Merchandise exports down 2.4% on-year, imports up 10.3%

India’s merchandise exports fell for the third consecutive month, by 2.4% on-year to $36.4 billion in January, after a 1% decline in December 2024. The primary reason was oil exports skidding for the eighth straight month even as Brent crude oil prices slipped to $79.2 per barrel compared with $80.2 per barrel a year ago.

However, strong growth in gems and jewellery (15.9%) and core¹ exports (14.4%) cushioned the overall decline.

At the same time, merchandise imports continued to rise —10.3% on-year to $59.4 billion in January — following 4.9% gains in December, driven by strong growth in core and gems and jewellery imports. Gold imports surged 40.8%, though slower than 55.4% in December, as prices of the yellow metal rose amid global uncertainty (up 33.2% to $2,710/toz in January 2025 from $2,034/toz a year ago). The lower sequential growth reflected easing demand as the wedding and festive seasons ended. Core import growth surged to 20.4% on-year from 3.9% in December.

Merchandise trade deficit widened to $23 billion in January from $21.9 billion in December and $16.6 billion a year ago. The widening gap was also reflected by the rupee depreciating to 86.3/$ in January from 85/$ previous month.

Cumulatively, merchandise exports rose 1.4% to $358.9 billion during April-January this fiscal from $354 billion in the year ago period. Cumulative imports grew faster, at 7.4%, to $601.9 billion from $560.3 billion. As a result, the trade deficit during the period widened to $243 billion from $206.3 billion.

Services exports grew 16.5% on-year in December (vs 13.9% in November), whereas services import growth moderated to13.8% from 26%, latest Reserve Bank of India data shows. Consequently, services trade surplus was $19.1 billion in December, compared with $16 billion in the year-ago period and $14.8 billion in the previous month.

¹Non-oil and non-gold