India trade deficit hits three month high as gold imports surge and US tariffs weigh on exports
India's trade deficit widened to $34.68 billion in January amid a surge in gold imports. Relief is expected this week as US tariffs drop from 50% to 18%.
India 
IN reported that its merchandise trade deficit widened to $34.68 billion in January, marking a three-month high for the country. According to data from the commerce ministry, the expansion of the deficit was fueled by a 5% fall in exports and a substantial increase in the value of imports, particularly precious metals. The change in the goods balance significantly alters the nation's external accounts for the month and carries implications for domestic exporters and ongoing trade negotiations.
IN reported that its merchandise trade deficit widened to $34.68 billion in January, marking a three-month high for the country. According to data from the commerce ministry, the expansion of the deficit was fueled by a 5% fall in exports and a substantial increase in the value of imports, particularly precious metals. The change in the goods balance significantly alters the nation's external accounts for the month and carries implications for domestic exporters and ongoing trade negotiations.A primary driver of the widened gap was a sharp rise in gold and silver imports. Gold imports surged to $12.07 billion in January, up from $4.13 billion in the previous period. This increase has been noted by analysts at Kotak Institutional Equities and has coincided with movements in Indian gold exchange traded funds. India's central bank continues to track these developments as they impact the broader financial environment and currency stability.
