Consultant picture. |Photograph supplied by: Reuters
India’s items commerce deficit widened to a three-month excessive of $34.68 billion in January, the final month affected by the practically 50% U.S. tariffs on Indian exports, which authorities officers introduced this week could be lowered to 18%.
The higher-than-expected items commerce deficit was pushed by a pointy improve in gold and silver imports, pushing whole imports up 12% month-on-month to $71.24 billion, whereas exports fell 5% to $36.56 billion, in response to knowledge launched by the Division of Commerce on Monday (February 16, 2026).
Earlier this month, U.S. President Donald Trump introduced that he would minimize tariffs on Indian items from 50% to 18%, sparking a way of reduction amongst exporters and policymakers. Mr. Trump stated India has agreed to chop its purchases of Russian oil and intends to greater than double its annual imports of American items.
Indian Commerce Minister Rajesh Agrawal informed reporters on Monday (February 16, 2026) {that a} commerce delegation will go to Washington subsequent week to finalize a commerce deal.
The 2 international locations are at present engaged on a commerce settlement based mostly on an interim framework signed 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. In response to the information, the worth of shipments to the US rose to $72.46 billion within the first 10 months of the fiscal 12 months.
Economists polled by Reuters anticipated the general commerce deficit to be $26 billion in January, in contrast with a deficit of $25.04 billion within the earlier month.
Enhance in gold imports
Commerce Ministry officers stated the rise in imports was pushed by shipments of gold and silver.
Gold imports in January rose to $12.07 billion from $4.13 billion in December.
Flows into India’s gold exchange-traded funds, which have to be backed by bodily gold, practically doubled in January to 240.4 billion rupees ($2.65 billion).
“Continued massive inflows into gold ETFs and their related purchases and imports of gold, in addition to unabated bodily gold imports, may pose challenges to India’s present account deficit,” Kotak Institutional Equities stated in a word on Monday. (February 16, 2026)
Authorities knowledge estimated companies exports at $43.9 billion and imports at $19.6 billion in January, suggesting a companies commerce surplus of $24.3 billion, in response to Reuters calculations.
India’s central financial institution will launch detailed month-to-month companies commerce knowledge about two weeks after the federal government’s preliminary estimates.
