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flag India's trade deficit hit $34.68 billion in January 2026, fueled by a 19% import surge, despite a new U.S. trade deal cutting tariffs on Indian exports.

flag India’s merchandise trade deficit widened to $34.68 billion in January 2026, the highest in three months, driven by a 19% year-on-year surge in imports to $71.24 billion, primarily due to higher gold and silver purchases. flag Exports rose slightly to $36.56 billion, with shipments to the U.S. declining. flag A new India-U.S. trade agreement reduced tariffs on billions in Indian exports, cutting rates from 50% to 18% for some goods and granting zero duty on others, aiming to boost competitiveness. flag Despite a growing trade gap, officials project total exports could exceed $860 billion for the fiscal year.

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