Daijiworld Media Network - New Delhi
New Delhi, Feb 16: India’s export performance gathered strong momentum in January, with combined merchandise and services shipments climbing 13.16 per cent year-on-year to $80.45 billion, up from $71.09 billion in the corresponding month last year, according to data released by the Commerce Ministry.
Merchandise exports alone edged up 0.6 per cent to $36.56 billion despite persistent global economic headwinds. Meanwhile, cumulative exports of goods and services for the April–January period rose 6.15 per cent to reach $720.76 billion.
Commerce Secretary Rajesh Agrawal said the country’s export sector continues to remain in positive territory and expressed confidence that total outbound shipments could approach $860 billion by the end of the current financial year.
On the import front, however, January saw a sharp 19 per cent increase in inbound goods shipments to $71.24 billion, largely driven by higher gold and silver imports. Consequently, the merchandise trade deficit widened to $34.68 billion, compared with $23.43 billion in January last year and $25 billion in December.
The January trade data also marks the final phase of the adverse impact of US tariffs imposed earlier under the administration of former US President Donald Trump. Tariffs on Indian exports have since been reduced to 18 per cent from the earlier 30 per cent.
The recently concluded India–US Bilateral Trade Agreement provides broad-based tariff rationalisation, zero-duty access across several major product categories, deeper cooperation in digital and technology sectors, and safeguards for India’s farmers, MSMEs and domestic industries, according to an official statement.
With India’s exports to the United States totalling $86.35 billion in 2024, the agreement is expected to significantly boost competitiveness in sectors such as textiles, leather, gems and jewellery, agriculture, machinery, home décor, pharmaceuticals and technology-driven industries.
Under the pact, tariffs on goods worth $30.94 billion have been slashed from 50 per cent to 18 per cent, while duties on another $10.03 billion worth of exports have been cut from 50 per cent to zero. As a result, a substantial portion of Indian products entering the US market will now benefit from sharply reduced or completely eliminated tariffs, strengthening their price advantage and market access.