<p>New Delhi: India’s trade deficit widened to Rs 3,14,821 crore ($34.68 billion) in January, from Rs 2,27,310 crore ($25.04 billion) in the previous month, largely driven by higher imports of gold and silver, even as exports were hit due to high US tariffs, data released by the Ministry of Commerce and Industry showed on Monday.</p><p>Merchandise exports fell to $36.56 billion in January, from $38.51 billion in December, while imports rose to $71.24 billion from $63.55 billion.</p><p>Gold imports surged by 350% to $12.07 billion in January, from $4.13 billion in the previous month, driven by a spike in prices. Silver import surged by 127% during the period.</p><p>On a year-on-year basis, exports were marginally higher by 0.61%, while imports surged by 19.2%.</p><p>During the April-January period, India’s goods exports went up 2.22% to $366.63 billion.</p><p>Commerce Secretary Rajesh Agrawal said overall exports, merchandise and services combined, is likely to surpass $860 billion in the financial year ending March 2026.</p><p>During the April-January period of the current fiscal, overall exports stood at $720.76 billion, 6.15% higher, when compared with the corresponding period of the previous year.</p><p>The US remains India’s top export destination, whereas China stays as the top source of imports. In the fiscal so far, India shipped goods worth $72.46 billion to the US, higher by 6%, as compared to $68.46 billion in the year-ago period. Imports from China in the April-January period rose to $108.18 billion, up nearly 14%, as against $95.05 billion a year ago.</p><p>“India’s latest trade data for January 2026 highlight the pronounced impact of US tariffs on export performance, while also hinting at early signs of market diversification,” Global Trade Research Initiative (GTRI) said in a note.</p>.Exports rise 1.87% in December 2025; trade deficit widens marginally.<p>Shipments to the US fell from $8.3 billion in June, to $5.5 billion in September. It rebounded to $6.3 billion in October and $7 billion in November. However, the rebound faded when hopes of a quick trade deal did not materialise. India’s exports to the US fell to $6.9 billion in December and $6.6 billion in January.</p><p>“With Washington expected to cut reciprocal tariffs on most Indian goods from 50% to 18% this week, we anticipate a swift recovery in shipments,” said GTRI.</p><p>Overall imports (merchandise and services combined) during April-January 2025-26 rose by 6.54% to $823.41 billion. Merchandise imports grew by 7.21% year-on-year to $649.86 billion during the first 10 months of 2025-26. The combined value of merchandise and services imports in January stood at $90.83 billion.</p><p>“The export outlook remains strong for the coming months as India and the US are close to concluding an interim trade deal. This will give a major boost to the engineering sector, which has been reeling under high tariffs imposed by the Trump administration,” said Pankaj Chadha, Chairman, EEPC India.</p><p>The trade deal with the US would also allow the Indian engineering sector to regain competitiveness in the world’s largest economy, Chadha added. </p>
<p>New Delhi: India’s trade deficit widened to Rs 3,14,821 crore ($34.68 billion) in January, from Rs 2,27,310 crore ($25.04 billion) in the previous month, largely driven by higher imports of gold and silver, even as exports were hit due to high US tariffs, data released by the Ministry of Commerce and Industry showed on Monday.</p><p>Merchandise exports fell to $36.56 billion in January, from $38.51 billion in December, while imports rose to $71.24 billion from $63.55 billion.</p><p>Gold imports surged by 350% to $12.07 billion in January, from $4.13 billion in the previous month, driven by a spike in prices. Silver import surged by 127% during the period.</p><p>On a year-on-year basis, exports were marginally higher by 0.61%, while imports surged by 19.2%.</p><p>During the April-January period, India’s goods exports went up 2.22% to $366.63 billion.</p><p>Commerce Secretary Rajesh Agrawal said overall exports, merchandise and services combined, is likely to surpass $860 billion in the financial year ending March 2026.</p><p>During the April-January period of the current fiscal, overall exports stood at $720.76 billion, 6.15% higher, when compared with the corresponding period of the previous year.</p><p>The US remains India’s top export destination, whereas China stays as the top source of imports. In the fiscal so far, India shipped goods worth $72.46 billion to the US, higher by 6%, as compared to $68.46 billion in the year-ago period. Imports from China in the April-January period rose to $108.18 billion, up nearly 14%, as against $95.05 billion a year ago.</p><p>“India’s latest trade data for January 2026 highlight the pronounced impact of US tariffs on export performance, while also hinting at early signs of market diversification,” Global Trade Research Initiative (GTRI) said in a note.</p>.Exports rise 1.87% in December 2025; trade deficit widens marginally.<p>Shipments to the US fell from $8.3 billion in June, to $5.5 billion in September. It rebounded to $6.3 billion in October and $7 billion in November. However, the rebound faded when hopes of a quick trade deal did not materialise. India’s exports to the US fell to $6.9 billion in December and $6.6 billion in January.</p><p>“With Washington expected to cut reciprocal tariffs on most Indian goods from 50% to 18% this week, we anticipate a swift recovery in shipments,” said GTRI.</p><p>Overall imports (merchandise and services combined) during April-January 2025-26 rose by 6.54% to $823.41 billion. Merchandise imports grew by 7.21% year-on-year to $649.86 billion during the first 10 months of 2025-26. The combined value of merchandise and services imports in January stood at $90.83 billion.</p><p>“The export outlook remains strong for the coming months as India and the US are close to concluding an interim trade deal. This will give a major boost to the engineering sector, which has been reeling under high tariffs imposed by the Trump administration,” said Pankaj Chadha, Chairman, EEPC India.</p><p>The trade deal with the US would also allow the Indian engineering sector to regain competitiveness in the world’s largest economy, Chadha added. </p>