India's trade deficit, or the difference between imports and exports, increased to $22.9 billion in January from $21.94 billion in December, owing to rising import costs caused by a rapidly falling currency.
Exports increased by 1.39% to $358.91 billion from April to January of this fiscal year, while imports increased by 7.43% to $601.9 billion.
Trade Secretary Sunil Barthwal commented on the data, stating that India's merchandise and services exports are performing exceptionally well.
In January, merchandise exports totaled $36.43 billion, compared to $38.01 billion in December, while imports totaled $59.42 billion. In December, imports totaled $59.95 billion.
In January, services exports were estimated to be $38.55 billion, with imports at $18.22 billion, compared to $32.66 billion and $17.50 billion in December, respectively.
According to a Reuters poll, economists expected a trade deficit of $22.35 billion in January.
The government had previously reported in December last year that India's trade deficit had increased to an all-time high of $37.84 billion, but the figure was revised to $32.84 billion after the gold import revision.
The narrowing of the trade deficit was most likely influenced by a drop in gold imports, as higher global prices reduced demand. According to a report by the Union Bank of India, gold prices have risen due to global market uncertainty, making purchases more costly.
Furthermore, as the festival and wedding season comes to an end, the demand for gold has decreased, contributing to a lower trade deficit.
