India’s trade deficit widens in January amid weak rupee, looming US tariffs

India’s trade deficit widened in January, adding to the pressure on authorities amid a fast-depreciating local currency and reciprocal tariffs from the US loom.

The difference between exports and imports stood at $23 billion in January, up from $21.94 billion in December, trade ministry data showed on Monday.

Exports declined 2.4% to $36.43 billion from a year ago, while imports rose 10.3% to $59.42 billion, the data showed.

India’s merchandise and services exports “are doing extremely well,” trade secretary Sunil Barthwal told reporters in New Delhi, adding that:  “Electronics goods are driving exports followed by drugs, pharmaceuticals and rice.”

Among imports, gold shipments declined in January to $2.68 billion when compared with $4.7 billion in December, while oil imports were down to $13.4 billion from $15.2 billion in December, the data showed.

Analysts said the end of the festive and wedding season contributed to the decline in the demand for gold, in addition to the surge in the price of precious metal.

In the ten months’ period from April-January, India’s exports rose by 1.39% to $358.91 billion while country’s imports surged by 7.43% to $601.9 billion.