What Factors Contributed to India’s 13% Growth in Goods and Services Exports in January?
Synopsis
India's exports of goods and services soared by 13.16% in January, reflecting resilience amid global economic uncertainties. This growth, driven by a robust bilateral trade agreement with the U.S., suggests a bright outlook for India's export sector. Discover how these developments could shape the future of Indian trade and economy.
Key Takeaways
India's exports increased by 13.16% in January.
Merchandise exports rose to $36.56 billion.
Cumulative exports reached $720.76 billion from April to January.
Trade deficit widened to $34.68 billion due to increased imports.
India-U.S. trade agreement enhances access for key sectors.
New Delhi, Feb 16 (NationPress) India's total exports of goods and services witnessed a 13.16 percent growth, reaching $80.45 billion in January of this year, in comparison to $71.09 billion during the same month last year, according to data shared by the Commerce Ministry on Monday.
The merchandise exports for the country saw a slight increase of 0.6 percent year-on-year, totaling $36.56 billion in January, despite ongoing global economic challenges, as indicated by the data.
Overall, the cumulative exports of both goods and services for the period from April to January recorded an increase of 6.15 percent, amounting to $720.76 billion.
Commerce Secretary Rajesh Agrawal informed reporters that exports of both goods and services have continued to show positive growth. "We are on track to approach $860 billion in total exports for the current fiscal year," he noted.
In contrast, imports of goods in January surged by 19 percent to $71.24 billion, largely due to a significant increase in gold and silver imports. Consequently, the merchandise trade deficit expanded to $34.68 billion, compared to $23.43 billion in January 2025 and $25 billion in December.
The trade statistics for January also reflect the final month affected by U.S. tariffs on Indian exports, as the Trump administration has announced a reduction in tariffs from 30 percent to 18 percent.
The conclusion of the India–U.S. Bilateral Trade Agreement facilitates comprehensive tariff adjustments, offering zero-duty access across numerous product categories, bolstered digital and technological cooperation, and a well-structured framework to safeguard the interests of Indian farmers, MSMEs, and local industries, according to an official statement.
With India's total exports to the U.S. hitting $86.35 billion in 2024, the agreement substantially improves competitive access across vital sectors such as textiles, leather, gems and jewelry, agriculture, machinery, home decor, pharmaceuticals, and tech-driven industries.
Under this agreement, tariffs on $30.94 billion worth of these exports have been reduced from 50 percent to 18 percent, while tariffs on an additional $10.03 billion have been lowered from 50 percent to zero. This development implies that a significant portion of Indian goods entering the U.S. market will now encounter either drastically reduced tariffs or be completely duty-free, greatly enhancing their price competitiveness.
Point of View
The recent surge in India's exports reflects the nation’s adaptability and strategic trade agreements. The positive trajectory in exports is a testament to the hard work of the Indian industries and the government's effective trade policies. As we look ahead, it is crucial for the nation to maintain this momentum to bolster economic growth and global competitiveness.
NationPress
21 Jun 2026
Frequently Asked Questions
What was the percentage increase in India's exports in January?
India's combined merchandise and services exports increased by 13.16% in January.
What factors contributed to the rise in exports?
The rise in exports can be attributed to the robust bilateral trade agreements and the resilience of the Indian economy despite global challenges.
How did imports impact the trade deficit?
Imports rose by 19% in January, leading to an increased merchandise trade deficit of $34.68 billion.
What are the key sectors benefiting from the India-U.S. trade agreement?
Sectors such as textiles, leather, gems and jewelry, agriculture, machinery, home decor, pharmaceuticals, and technology-driven industries will benefit significantly.
What is the projected export target for India this fiscal year?
India is on track to achieve approximately $860 billion in total exports for the current fiscal year.
