New Delhi: India’s trade gap widened sharply in January as imports surged, even though exports showed some strength in key markets like the United States.
Trade Deficit Hits Fiscal High
India’s merchandise trade deficit rose to USD 34.68 billion in January, the highest level in the current financial year so far. However, it was still lower than the record USD 41.68 billion seen in October 2025.
Goods exports fell to USD 36.56 billion in January from USD 38.51 billion in December. On a year-on-year basis, exports were slightly higher than USD 36.43 billion in January 2025, showing some stability.
Imports rose strongly to USD 71.24 billion in January, compared to USD 63.55 billion in December and USD 59.42 billion a year ago. This sharp rise in imports was the main reason for the wider trade gap.
Services Provide Support
Despite the widening goods deficit, services trade remained strong. Total exports of goods and services stood at USD 80.45 billion in January, up from USD 71.09 billion a year earlier.
Services exports alone rose to USD 43.90 billion from USD 34.75 billion, showing steady global demand.
Commerce Secretary Rajesh Agrawal said total exports during April–January reached USD 720 billion, up 6.15 per cent from USD 679 billion last year. January exports alone grew 13.17 per cent year-on-year.
Sector Trends: Mixed Picture
Engineering goods remained the top export category at USD 101.13 billion during April–January. Electronic goods grew over 30 per cent, while pharmaceuticals and marine products also increased.
However, petroleum product exports fell more than 13 per cent year-on-year. Ready-made garments saw slight growth, while rice and gems and jewellery exports declined.
On the import side, crude oil and petroleum products remained major items, though their value declined year-on-year. Imports of electronic goods, gold, machinery and non-ferrous metals rose sharply, showing strong domestic demand.
India–US Talks Continue
Exports to the US reached USD 72.46 billion during April–January, higher than last year. Bilateral trade stood at USD 116.39 billion, with India posting a surplus of USD 28.53 billion.
An Indian trade team will visit the US next week to continue talks. Officials said a small trade deal could be finalised by March.
