India's Trade Gap Widens Amidst Shifting Global Commerce

India's trade with China continued to show a significant imbalance in January 2026, with goods shipments declining from previous months. Bilateral merchandise trade with China for the April-January period of the current fiscal year recorded a substantial trade deficit of $92.30 billion.

Despite the challenges in goods trade with China, India's services exports exhibited resilience. In January 2026, total exports, encompassing both goods and services, saw an increase compared to the previous year. Services exports, in particular, rose significantly, while services imports also experienced an uptick, indicating continued engagement in international services trade.