India’s merchandise trade deficit widened sharply to $35 billion in January, up from $24 billion in December, driven by a surge in gold and silver imports and a 23 per cent decline in exports to the US.
Merchandise exports during January remained largely flat at $35.56 billion, registering a marginal rise of 0.6 per cent year-on-year. Imports, however, jumped 19 per cent, led by a 24 per cent increase in inbound shipments from the US.
Gold imports during the month soared 350% to $12 billion, compared with $2.66 billion in the corresponding month of the previous year.
India’s overall trade deficit — including both merchandise and services — also widened significantly to $10.38 billion in January 2026, nearly doubling from $5.39 billion in the same month last year. Combined exports of merchandise and services stood at $80.45 billion in January 2026, marking a 13.16 per cent increase from $71.09 billion in January 2025.
In the first 10 months of the current financial year (April–January), India’s total exports reached $720 billion, while imports stood at $823 billion.
Commerce Secretary Rajesh Agrawal said, “This year, we expect to cross $860 billion in total exports of merchandise and services. In services, we expect to cross $410 billion in 2025–26.”
Gold imports have risen from $32.9 billion in FY2018–19 to $58.0 billion in FY2024–25, marking a 76 per cent increase over six years, according to Commerce Ministry data. However, import volumes declined from 982.7 tonnes to 757.1 tonnes during the same period — a 23 per cent reduction.
“India’s gold import data shows a clear structural shift: import value has risen sharply over time, while import quantity has stagnated or declined, indicating that price increases — not volumes — are driving the surge,” the ministry said.
Despite tariff pressures, the US continued to be India’s largest export destination, with exports growing nearly 6 per cent during the April–January period. Exports to the US stood at $72.46 billion between April 2025 and January 2026. However, shipments to the US fell 4.5 per cent in January compared with December.
China remained India’s largest import source. Imports from China rose more than 13% during April-January to $108.18 billion. Exports to China also gained momentum, rising over 38% during the same period to $15.88 billion.