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India's Trade Deficit Nearly Doubles as Imports Outpace Export Growth

India's overall exports rose by 13.16% year-on-year to $80.45 billion in January 2026. However, imports grew at a faster pace of 18.77%, reaching $90.83 billion, causing the combined trade deficit to nearly double to $10.38 billion. Commerce Secretary Rajesh Agrawal stated that cumulative exports for April-January reached $720.76 billion, with a full-year target of crossing $860 billion. The data shows services exports were a key driver of growth, rising significantly from $34.75 billion to $43.90 billion in January.

Key Points: India's Jan Trade Deficit Widens, Exports & Imports Rise

  • Trade deficit nearly doubles to $10.38B
  • Exports rise 13.16% to $80.45B
  • Imports grow faster at 18.77%
  • Services exports show strong growth
2 min read

Exports, imports rise in January; India trade deficit nearly doubles

India's overall trade deficit nearly doubled to $10.38B in Jan 2026 as imports grew faster than exports. Full-year export target is $860B.

Exports, imports rise in January; India trade deficit nearly doubles
"This year we expect to cross USD 860 billion in total exports - Commerce Secretary Rajesh Agrawal"

New Delhi, February 16

India's overall exports, merchandise and services combined, increased by 13.16 per cent year-on-year to USD 80.45 billion in January 2026, compared with USD 71.09 billion in January 2025, according to data released by the Commerce Ministry on Monday.

However, overall imports during the month grew at a faster pace of 18.77 per cent, rising to USD 90.83 billion from USD 76.48 billion in January 2025, the ministry data showed.

As a result, India's overall trade deficit, merchandise and services combined, widened significantly to USD 10.38 billion in January 2026, nearly doubling from USD 5.39 billion in the corresponding month last year.

In January, both merchandise and services exports and imports rose. Merchandise exports rose from USD 36.34 billion to USD 36.56 billion, while services exports rose from USD 34.75 billion to USD 43.90 billion.

Commerce Secretary Rajesh Agrawal said overall trade growth for the first 10 months (April-January), the cumulative value of overall exports, including both merchandise and services, is estimated at USD 720.76 billion as compared to USD 679 billion in corresponding period during the last financial year. It is an estimated growth of 6.15 per cent and increased around approximately USD 40 billion.

"This year we expect to cross USD 860 billion in total exports of merchandising and services. In services, we expect to cross USD 410 billion this year (2025-2026)," said Agrawal.

India's total exports had touched an all-time high of USD 824.9 billion in financial year 2024-25. This marked a yearly growth of 6.01 per cent over USD 778.1 billion exports in 2023-24, setting a new annual milestone. The 2024-25 exports exceeded the initial anticipation of USD 800 billion.

India's overall imports, merchandise and services combined, during April-January of 2025-26 increased by 6.54 per cent year-on-year to USD 823.41 billion, compared with USD 772.85 billion in the corresponding period of 2024-25, according to the data.

Merchandise imports during the April-January period stood at USD 649.86 billion in 2025-26, up 7.21 per cent from USD 606.13 billion recorded in the same period of the previous fiscal.

Services imports grew at a more moderate pace of 4.10 per cent, rising to USD 173.55 billion from USD 166.72 billion in April-January 2024-25.

- ANI

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Reader Comments

P
Priya S
A widening trade deficit is a concern for any economy. While exports are growing, imports are growing faster. This puts pressure on the rupee. We need policies that boost 'Make in India' for essential goods to reduce our import dependency, especially on electronics and crude oil.
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Arjun K
Crossing $860 billion in total exports would be a huge achievement! The Commerce Secretary seems confident. The services sector is clearly our star performer. Hope this growth translates into more high-quality jobs for our youth in tech and finance.
S
Sarah B
Interesting data. The nearly flat growth in merchandise exports ($36.34B to $36.56B) is the real story here, hidden by the strong services number. As a foreign investor watching, I'd want to see Indian manufacturing exports pick up pace to balance the trade sheet more sustainably.
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Karthik V
The numbers are good overall, but the doubling of the monthly deficit cannot be ignored. With festivals and weddings over, why such high import growth? Are we importing too many finished goods instead of raw materials for our own industries? Need to promote 'Vocal for Local' more seriously.
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Nisha Z
As a small business owner exporting handicrafts, I feel the global demand is there. But logistics and compliance are still a headache. If the government can simplify processes further, many more small players like me can contribute to these export figures. 🙏

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