India’s Trade Deficit Widens To $22.99 Billion In January As Imports Rise
India’s trade deficit widened in January 2025, with imports rising 10.3% year-on-year, exceeding the median forecast of $21 billion.
India’s trade deficit expanded to $22.99 billion in January from $21.94 billion in December, according to data from the Ministry of Commerce and Industry. The increase came as imports rose by 10.3% year-on-year.
The gap between imports and exports was wider than the median estimate of $21 billion. Forecasts from 17 economists tracked by Bloomberg had projected the deficit to be between $19.6 billion and $25 billion.
Merchandise exports declined by 2.4% to $36.43 billion in January compared to $37.32 billion in the same month last year. Imports increased to $59.42 billion from $53.88 billion during the same period. From a month ago, exports fell by 4.2% while imports fell by 0.9%.
For the fiscal year so far, merchandise exports rose 1.4%, while imports rose 7.4% from the same period an year ago.
In the services sector, exports were recorded at $38.55 billion, while imports stood at $18.22 billion.
Officials at the ministry said that they will wait until the US actually imposes reciprocal tariff on India. High US tariffs on other nations may make Indian exports competitive, ministry officials added. More details on bilateral trade agreement with the US will emerge once their negotiating team is in place, they said.
Key Export Items
Exports of engineering goods stood at $10 billion, 7.4% lower year-on-year.
Petroleum product exports were at $6.8 billion, 15.8% higher than a year earlier.
Gems and jewellery exports were at $2.8 billion, 2.2% lower on an annual basis.
Organic and inorganic chemical exports were at $2.3 billion, 3.2% higher on an annual basis.
Drugs and pharmaceutical exports were at $2.3 billion, 10.5% higher from over a year earlier.
Electronic exports were at $3 billion, 23% higher from over a year earlier.
Key Import Items
Petroleum, crude, and product imports were down 28.1% from a year ago at $19.9 billion.
Organic and inorganic chemical imports were at $2.5 billion, 0.5% lower on an annual basis.
Imports of coal, coke, and briquettes were down 26.5% than a year ago at $3.3 billion.
Imports of electronic goods were at $7.1 billion, 6.7% higher over a year earlier.
Machinery, electrical and non-electrical goods were at $4.1 billion, down 0.3% over the previous year.
Gold imports stood at $3.3 billion, 9.8% lower than a year ago.
