Home / Business and Economy / India's Trade Deficit Widens Amidst Tariffs
India's Trade Deficit Widens Amidst Tariffs
16 Feb
Summary
- Merchandise exports fell to $36.56 billion in January.
- Trade deficit widened to $34.68 billion, the final month of tariffs.
- Gold and silver shipments drove a rise in goods imports.
India's merchandise trade deficit expanded to $34.68 billion in January, with exports declining to $36.56 billion from $38.51 billion in December. This represents the last month where steep U.S. tariffs significantly impacted trade figures.
Goods imports saw an increase, primarily driven by higher shipments of gold and silver. Economists surveyed by Reuters had projected a deficit closer to $26 billion for January.
The January figures reflect the concluding impact of a 50% tariff imposed by the U.S. on Indian goods. This rate is expected to decrease to 18% following a proposed trade agreement, with India agreeing to reduce its Russian oil purchases and increase imports of U.S. goods.
Additionally, India has recently signed a trade pact with the European Union, anticipated to become effective within the next year. The U.S. had previously imposed a 25% tariff on Indian shipments for imports of Russian crude oil.
