India’s January Trade Deficit Hits 3-Month High of $34.68 Billion on Gold, Silver Import Surge

India’s merchandise Trade Deficit rose to $34.68 billion in January, compared with $25 billion in December and $23.43 billion in the same month last year.  

The higher gap followed a sharp rise in imports during the month, while export growth remained limited. 

Imports Climb on Precious Metals 

Total imports increased 19% year-on-year to $71.24 billion in January, according to the reports. The rise was mainly due to higher shipments of gold and silver. 

Gold imports surged 349% to $12.07 billion during the month. Silver imports also rose sharply, increasing 127% to $2 billion. January’s import figure was the second-highest monthly level after October 2025, when imports touched $76.1 billion. 

Exports Show Marginal Increase 

Merchandise exports grew 0.6% year-on-year to $36.56 billion in January. Non-petroleum and non-gems and jewellery exports declined 0.24% to $32.78 billion, indicating some pressure in core export segments. 

Among major sectors, engineering goods exports rose 10.37% and marine products increased 13.29%. Chemicals, pharmaceuticals, and man-made yarn also recorded small gains. 

Shipments to US Fall in January 

Exports to the United States declined 21.7% year-on-year to $6.59 billion. The drop came during a period when several Indian exports were subject to tariffs of up to 50%.  

Despite the January decline, cumulative shipments to the US between April and January rose 5.85% to $72.46 billion. 

Services Trade Records Surplus 

Services exports rose 26.3% year-on-year to $43.9 billion in January. Services imports increased 17.3% to $19.6 billion, resulting in a surplus of $24.3 billion. The services figures are provisional and subject to revision. 

Long-Term Trend in Gold Imports 

Commerce department data shows the rise in gold import value has largely been price-driven, according to news reports.  

Between FY19 and FY25, the value of gold imports increased from $32.9 billion to $58 billion, while volumes declined from 982.7 tonnes to 757.1 tonnes. 

Read More: India's Silver Imports Surge 129% in FY25, Outpacing Gold! 

Conclusion 

Higher precious metal imports were the main factor behind the 3-month high trade deficit. Merchandise exports showed only marginal growth during the month. 

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