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India's Trade Deficit Soars Amid Rising Gold Imports

2/18/2026

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Story summary
  • India's merchandise trade deficit reached $34.68 billion in January 2026.
  • Gold imports rose to $12.07 billion, up from $4.13 billion in December 2025.
  • Exports fell 5% to $36.56 billion, due to the United States tariff cut from 50% to 18%.
  • For April–December 2025, the overall deficit reached $96.58 billion.
  • Analysts warn that gold and silver imports could strain India's forex reserves, with services exports projected to reach $43.9 billion.