Ministry of Commerce and Industry reports India’s January trade deficit at 3-month high of $34.68 billion

Key facts

• India’s merchandise trade deficit widened to a three-month high of $34.68 billion in January 2026, up from $23.43 billion in the same month the previous year.
• Total merchandise imports for January rose by 19% to reach $71.24 billion, while merchandise exports grew by 0.6% to $36.56 billion.
• Gold imports during the month increased more than fourfold to $12.07 billion, while silver imports rose by 127% to reach $2 billion.
• Services exports are estimated to reach a record high of $43.9 billion in January, marking a 26.3% year-on-year increase.
• The Ministry of Commerce and Industry projects overall exports to reach nearly $860 billion in the current fiscal year, with services exports expected to exceed $410 billion.
• Cumulative exports, including both merchandise and services, rose by 6.15% to $720.76 billion during the April-January period.
• India’s imports from China were recorded at $108.18 billion during the April-January period of the 2025-26 fiscal year.
• Key drivers for goods exports included engineering goods, petroleum products, meat, dairy, and iron ore.
• The primary export destinations for Indian goods were the United Arab Emirates (UAE), China, United Kingdom (UK), Italy, and the Netherlands.
• Exports to the United States (US) fell by 21.7% to $6.59 billion in January, attributed to the impact of tariff barriers.
• Non-petroleum and non-gems and jewellery exports contracted by 0.24% to $32.78 billion in January.
• According to the Global Trade Research Initiative (GTRI), total merchandise exports for the April 2025 to January 2026 period fell by 4.4% to $36.6 billion.