India’s Trade Deficit Widens in January 2026 as Gold Imports Surge Sharply

India’s Trade Deficit Widens in January 2026 as Gold Imports Surge Sharply

India’s Trade Deficit Widens in January 2026 as Gold Imports Surge Sharply India’s merchandise trade deficit widened sharply in January 2026 as a significant surge in gold imports pushed overall inbound shipments to their highest monthly level in recent months, according to provisional trade data released by the government. Imports Jump Nearly 19% on Gold Buying Spree Merchandise imports rose 19 percent year-on-year to USD 71.24 billion in January, driven largely by a spike in gold purchases. Gold imports alone stood at USD 12.07 billion during the month, a steep jump from USD 4.13 billion recorded in December. Economists attributed the rise in gold imports to a combination of seasonal demand, price volatility in global markets, and expectations around interest rate movements. The surge significantly widened the merchandise trade gap for the month, despite relatively stable non-oil, non-gold imports. Exports Show Modest Growth Amid Global Uncertainty Merchandise exports grew marginal…