India's Merchandise Trade Deficit Widens to $34.68 Billion in January

India's merchandise trade deficit widened to a three-month high of $34.68 billion in January 2026, as imports surged 19.2 percent year-on-year while exports rose only marginally by 0.61 percent, according to government data released on February 16.

Merchandise exports reached $36.56 billion for the month, a slight increase from $36.43 billion in January 2025 but a decline from $38.51 billion in December 2025. Key contributors included electronic goods, pharmaceuticals, engineering products, and marine items. However, sectors such as readymade garments, gems and jewelry, rice, tea, spices, leather, and plastics recorded declines.

Imports jumped to $71.24 billion, the highest so far in the current fiscal year, driven primarily by a sharp rise in gold and silver shipments amid elevated global prices. Gold imports soared 349 percent to approximately $12 billion, with supplies from Switzerland increasing over 800 percent to $3.95 billion. Silver imports rose 127 percent to $2 billion. Petroleum imports dipped slightly by 0.24 percent to $13.4 billion, while electronics and machinery also contributed to the import growth.

The overall trade picture, combining merchandise and services,...