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India's Exports Surge 13% in Jan, US Trade Deal Boosts Key Sectors

India's combined merchandise and services exports rose by 13.16% year-on-year to $80.45 billion in January. The merchandise trade deficit, however, widened significantly to $34.68 billion due to a sharp rise in gold and silver imports. The data reflects the recent finalization of a US-India trade agreement that reduces tariffs on billions of dollars worth of Indian exports. This deal enhances competitive access for key Indian sectors like textiles, leather, gems, and pharmaceuticals in the US market.

Key Points: India's Exports Rise 13% in January, Trade Deficit Widens

  • Jan exports hit $80.45B
  • Merchandise trade deficit widens to $34.68B
  • US trade deal slashes tariffs on key goods
  • Competitive access boosted for textiles & gems
2 min read

India's goods & services exports clock 13 per cent rise in January

India's goods & services exports hit $80.45B in Jan, up 13.16%. US trade deal cuts tariffs, boosting textiles, gems, and pharma competitiveness.

"We will be nearing $860 billion in overall exports in the current financial year. - Commerce Secretary Rajesh Agrawal"

New Delhi, Feb 16

India's combined merchandise and services exports recorded a 13.16 per cent increase to $80.45 billion in January this year, compared with $71.09 billion in the same month of the previous year, data released by the Commerce Ministry on Monday showed.

The country's merchandise exports rose 0.6 per cent year-on-year to $36.56 billion in January, despite the global economic uncertainties, the data showed.

Cumulative exports of both merchandise and services (April-January) recorded a 6.15 per cent rise to $720.76 billion.

Commerce Secretary Rajesh Agrawal told journalists that merchandise and services exports have remained in positive territory. "We will be nearing $860 billion in overall exports in the current financial year."

However, imports of goods during January recorded a 19 per cent increase to $71.24 billion due to the sharp rise in gold and silver shipments. As a result, the merchandise trade deficit widened to $34.68 billion compared to $23.43 billion in January 2025 and $25 billion in December.

The trade figures for January also reflect the last month of the adverse impact of US tariffs on Indian exports, as the Trump administration has announced a reduction in tariffs for Indian exports to 18 per cent from 30 per cent earlier.

The finalisation of the India-US Bilateral Trade Agreement delivers comprehensive tariff rationalisation, zero-duty access across large product categories, enhanced digital and technology cooperation, and a carefully calibrated framework to safeguard India's farmers, MSMEs and domestic industry, according to an official statement.

With India's total exports to the United States standing at $86.35 billion in 2024, the agreement significantly enhances competitive access across key sectors, including textiles, leather, gems and jewellery, agriculture, machinery, home decor, pharmaceuticals, and technology-driven industries.

Under the agreement, tariffs on $30.94 billion worth of these exports have been reduced from 50 per cent to 18 per cent, while tariffs on another $10.03 billion have been reduced from 50 per cent to zero. This means a substantial share of Indian goods entering the U.S. market will now face either sharply lower tariffs or completely duty-free access, significantly improving price competitiveness.

- IANS

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Reader Comments

P
Priya S
Good to see exports rising, but the trade deficit widening to nearly $35 billion is worrying. The spike in gold imports is a classic Indian problem – we need to control this unnecessary spending. The focus should be on boosting manufacturing exports further.
A
Arjun K
The tariff reduction from 50% to zero on $10 billion worth of goods is huge! This will make 'Make in India' products much more competitive in the American market. Hope our MSMEs are ready to scale up and grab this opportunity.
S
Sarah B
As someone working in the pharma export sector, the enhanced digital and tech cooperation mentioned in the agreement is the real win. It's not just about tariffs, but about building long-term, sophisticated trade partnerships. Promising data for January.
K
Karthik V
Merchandise exports grew only 0.6%... that's almost flat. The headline 13% is driven by services. We need to ask why our goods aren't selling as well globally despite the deals. Is it a quality issue or just global demand slowdown?
M
Meera T
Positive news overall! The safeguard for our farmers in the agreement is very important. We must protect our agriculture. Hope the benefits of this export growth reach the small towns and villages, not just the big cities. 🙏

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