Consultant picture. | Photograph Credit score: Reuters
India’s merchandise commerce deficit widened to a three-month excessive of $34.68 billion in January, marking the ultimate month impacted by round 50% US tariff on Indian exports, which authorities officers stated might be pared to 18% this week.
The broader-than-expected items commerce deficit was pushed by a pointy rise in gold and silver imports, which pushed up whole imports by 12% month-on-month to $71.24 billion, whereas exports fell 5% to $36.56 billion, knowledge from the commerce ministry confirmed on Monday (February 16, 2026).
US President Donald Trump earlier this month stated he would slash tariffs on Indian items to 18% from 50%, sparking aid amongst exporters and policymakers. Mr. Trump stated that India has agreed to chop Russian oil purchases and intends to greater than double its annual imports of US items.
A commerce delegation will journey to Washington subsequent week to finalize a commerce settlement, Rajesh Agrawal, India’s commerce secretary, informed reporters on Monday (February 16, 2026).
The 2 nations are at present engaged on a commerce pact on the premise of an interim framework, concluded earlier this month.
Merchandise exports to the US, India’s largest export market, fell 4.5% month-on-month to $6.58 billion in January. Shipments to the US rose to $72.46 billion within the first ten months of the fiscal 12 months, knowledge confirmed.
Economists had anticipated the general commerce deficit to be $26 billion in January, in accordance with a Reuters ballot, in comparison with a deficit of $25.04 billion within the earlier month.
Rise in gold imports
The rise in imports was pushed by gold and silver shipments, a commerce ministry official stated.
Gold imports in January rose to $12.07 billion from $4.13 billion in December.
Inflows into Indian gold trade traded funds, which should be backed by bodily gold, practically doubled in January to 240.4 billion rupees ($2.65 billion).
“Continued massive inflows into gold ETFs, and consequent buy/import of gold by ETFs, together with unabated imports of bodily gold, could pose challenges to India’s present account deficit”, Kotak Institutional Equities stated in a word on Monday.(February 16, 2026)
Authorities knowledge confirmed that companies exports in January have been estimated at $43.90 billion and imports at $19.60 billion, suggesting a companies commerce surplus of $24.30 billion, in accordance with Reuters’ calculations.
India’s central financial institution releases detailed month-to-month companies commerce knowledge about two weeks after the federal government’s preliminary estimates.
Revealed – February 17, 2026 02:56 am IST