Exports Down, Trade Deficit at $22.99 Billion in January

India’s trade deficit grew to $22.99 billion in January 2025, as merchandise exports dropped to $36.43 billion from $38.01 billion in December. Imports stayed high at $59.42 billion, widening the trade gap. Economists had predicted a deficit of $22.35 billion. Increased import costs and reduced export earnings caused this larger deficit. Services exports were estimated at $38.55 billion, while services imports stood at $18.22 billion.

This widening trade deficit shows the challenges India faces in balancing imports and exports amid global economic uncertainties. The decline in exports may be due to weaker demand in key markets, while high import costs reflect rising prices of essential goods. As the country navigates these economic challenges, policymakers are monitoring trade dynamics to ensure stability. The trade deficit’s impact on the economy highlights the need for strategic measures to boost exports and manage imports effectively.