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India's Trade Deficit Widens on Gold Imports
16 Feb
Summary
- India's trade deficit in January 2026 reached $10.38 billion.
- Overall exports grew 6.15% to $720.76 billion in 10 months.
- Gold imports increased in value despite lower volumes due to price hikes.
India's trade deficit widened in January 2026, reaching $10.38 billion. This increase was largely attributed to a surge in gold and silver imports, influenced by escalating global prices, even as import volumes for gold saw a reduction. The value of gold imports rose by 1.83% due to a 24.62% jump in unit prices.
Despite the monthly deficit, India's overall trade performance demonstrated strength. Between April 2025 and January 2026, total exports grew by 6.15% to $720.76 billion. Services exports were a particular highlight, increasing to $354 billion. Exports to the United States, India's key market, also saw an increase.
The ministry anticipates continued export momentum through February and March 2026. Projections indicate India is on track to surpass $860 billion in overall exports by the fiscal year's end, with merchandise exports expected to exceed $410 billion for the first time.
