Electronics, pharmaceuticals, and rice drive Indian exports; trade talks with U.S. intensify
India has reaffirmed its commitment to increasing imports of industrial goods from the U.S., following Prime Minister Shri Narendra Modi’s recent visit to Washington. This announcement comes as India’s merchandise trade deficit stood at $22.99 billion in January, aligning with market expectations.
January’s merchandise exports reached $36.43 billion, down from $38.01 billion in December 2024, while imports slightly declined to $59.42 billion from $59.95 billion. Electronics, pharmaceuticals, and rice remained key export drivers, according to Trade Secretary Sunil Barthwal.
In the services sector, exports saw a notable rise to $38.55 billion in January, up from $32.66 billion in December, while imports increased marginally to $18.22 billion.
The trade update follows India and the U.S.’s renewed push to resolve tariff disputes and enhance bilateral trade. U.S. President Donald Trump reiterated plans for reciprocal tariffs, emphasising parity in duties levied on American goods. With a $45.6 billion trade deficit with India, Washington is seeking greater access to Indian markets.
India, in turn, is negotiating tariff reductions with the U.S., particularly in strategic sectors. Gold and crude oil imports fell significantly in January, reflecting a shifting trade landscape. Officials have also been working to correct previous discrepancies in trade data, ensuring accurate reporting moving forward.
As New Delhi and Washington set an ambitious timeline for trade negotiations, the focus remains on balancing economic interests and fostering deeper commercial ties.
Source: Business Standard
