India's trade deficit swells to $34.68 billion in January
India's trade deficit hit $34.68 billion in January 2026—way above expectations—as imports soared to $71.24 billion while exports dipped to $36.56 billion.
The rush was mostly about gold and silver, driven largely by higher shipments and changes in US tariff policy.
Bigger trade deficit means more money flowing out than in
A bigger trade deficit means more money flowing out than in, which pushed India's current account deficit up to 2.8% of GDP last quarter (from 1.3%).
Still, the yearly number stayed steady at 0.7%, thanks to strong services and remittance inflows—a reminder that India's economy is more than just goods.
Gold imports were hot, reflecting higher gold and silver shipments
Gold imports were hot, reflecting higher gold and silver shipments, and jewelry exports actually grew by over 5% between April and January—even with a weaker US market.
Meanwhile, gem and jewelry exports held steady at $23.19 billion for April-January 2025-26, showing how Indian businesses are adapting by finding new buyers beyond the US as global trade rules shift.