Goods Trade Deficit Widens in Jan

Chennai: India’s merchandise trade deficit widened to $34.68 billion in January as imports surged while the exports declined.

The gap between imports and exports swelled to $34.68 billion from $25.04 billion in December and $23 billion a year earlier, as per government data. The deficit is the highest in the current fiscal so far, though below the record $41.68 billion in October 2025.

Merchandise exports declined to $36.56 billion in January from $38.51 billion in December but were marginally higher than $36.43 billion in the same month last year. Merchandise exports were driven by electronic goods, meat, dairy and poultry products, drugs and pharmaceuticals, engineering goods and marine products.

Imports surged to $71.24 billion from $63.55 billion in December 2025 and $59.42 billion in January 2025. Imports of petroleum and crude products ($13.39 billion), gold ($12.07 billion), electronics goods ($10.19 billion) and machinery ($5.41 billion) contributed to the higher trade deficit.

India’s total merchandise exports during April–January FY26 rose to $366.63 billion, up from $358.91 billion a year ago. Imports increased to $649.86 billion during the first 10 months of the current fiscal, leading to a goods trade deficit of $283.23 billion.

Exports to the US declined to $6.58 billion in January from $7.01 billion in December. However, cumulative shipments during April–January rose 5.8 per cent year-on-year to $72.46 billion.

India's bilateral merchandise trade with China reached $124.06 billion in the April-January period of the current fiscal, with a trade deficit of $92.30 billion. Exports to China climbed to $15.88 billion, up from $11.48 billion a year earlier.

India's goods shipments to China moderated to $1.63 billion in January from $2.05 billion in December and $2.20 billion in November.

Meanwhile, the combined merchandise and services trade surplus narrowed year-on-year in January.