A Reuters poll of economists had projected a January trade deficit of $26 billion, making the actual figure significantly higher than expected.
Imports rose to $71.24 billion from $63.55 billion, reflecting a surge in gold and silver shipments.
Commerce Secretary Rajesh Agrawal said that India’s exports during April-January of this fiscal year increased 2.22% to $366.63 billion, and added that goods and services exports could surpass $860 billion in the full fiscal year.
The January trade figures also mark the last month affected by steep US tariffs on Indian exports. US President Donald Trump earlier this month announced a reduction in tariffs on Indian goods to 18% from 50%, sparking relief among exporters and policymakers. As part of the agreement, India has agreed to cut Russian oil purchases and plans to more than double its annual imports of US goods.
The numbers reflect the final impact of Trump’s 50% tariff, with the effective rate now down to 25% and expected to ease further to 18% once a proposed trade agreement between India and the US is signed in March. The two countries are currently negotiating the pact on the basis of an interim framework.
India has also recently signed a trade pact with the European Union, expected to come into force within the next year, signaling further opportunities for boosting exports.