India’s combined merchandise and services exports saw a 13.16% increase to $80.45 billion in January this year, up from $71.09 billion in the same period last year, as per data from the Commerce Ministry. Despite global economic uncertainties, the country’s merchandise exports grew by 0.6% year-on-year to $36.56 billion in January.
The cumulative exports of merchandise and services from April to January registered a 6.15% rise, reaching $720.76 billion. Commerce Secretary Rajesh Agrawal mentioned that both merchandise and services exports have maintained positive growth, projecting overall exports to reach around $860 billion in the current financial year.
In contrast, imports of goods in January surged by 19% to $71.24 billion, mainly due to a significant increase in gold and silver shipments. Consequently, the merchandise trade deficit widened to $34.68 billion compared to $23.43 billion in January 2025 and $25 billion in December.
The trade data for January also reflects the lingering impact of US tariffs on Indian exports, with the Trump administration reducing tariffs on Indian exports from 30% to 18%. The India–US Bilateral Trade Agreement finalization promises comprehensive tariff rationalization, zero-duty access across various product categories, enhanced digital and technology cooperation, and a framework to protect India’s farmers, MSMEs, and domestic industry.
Under this agreement, tariffs on $30.94 billion worth of Indian exports have been reduced from 50% to 18%, while tariffs on another $10.03 billion have been cut to zero. This move significantly improves the price competitiveness of Indian goods in the US market, benefiting sectors like textiles, leather, gems and jewelry, agriculture, machinery, home decor, pharmaceuticals, and technology-driven industries.
