January trade deficit widens to $23 bn as exports dip by 2.38% on year

During April-January period this fiscal, exports increased by 1.39% to $358.91 billion. File
| Photo Credit: Vipin Chandran

India’s trade deficit widened to $22.99 billion in January 2025, up from $16.56 billion in the same month last year, as goods exports dipped 2.38% year on year to $36.43 billion, the third consecutive month of fall, as per government data. The decline in exports was largely owing to a sharp fall in petroleum products exports.

Imports increased by 10.28% to $59.42 billion in January 2025 with a rise in inbound shipments of electronic goods, gold, non-ferrous metals, iron and steel and chemicals, among others, according to quick estimates of trade data for the month shared by the commerce ministry on Monday. Goods exports fell in January 2025 as petroleum products exports reduced by more than half during the month, but non-petroleum exports increased 14.15% to $ 32.86 billion demonstrating resilience of exporters, Commerce Secretary Sunil Barthwal said. Despite global conflicts and tariff wars, India has been able to do well in both goods and services exports, he said.

“Electronic goods are driving exports, followed by drugs, pharmaceuticals and rice,” he said adding that gems and jewellery had picked up after a long time, which was a good sign for the future.

(The writer is with The Hindu businessline)