New Delhi: India's combined merchandise and services exports recorded a 13.16 per cent increase to $80.45 billion in January this year, compared with $71.09 billion in the same month of the previous year, data released by the Commerce Ministry on Monday showed.

The country’s merchandise exports rose 0.6 per cent year-on-year to $36.56 billion in January, despite the global economic uncertainties, the data showed.

Cumulative exports of both merchandise and services (April–January) recorded a 6.15 per cent rise to $720.76 billion.

Commerce Secretary Rajesh Agrawal told journalists that merchandise and services exports have remained in positive territory. "We will be nearing $860 billion in overall exports in the current financial year."

However, imports of goods during January recorded a 19 per cent increase to $71.24 billion due to the sharp rise in gold and silver shipments. As a result, the merchandise trade deficit widened to $34.68 billion compared to $23.43 billion in January 2025 and $25 billion in December.

The trade figures for January also reflect the last month of the adverse impact of US tariffs on Indian exports, as the Trump administration has announced a reduction in tariffs for Indian exports to 18 per cent from 30 per cent earlier.

The finalisation of the India–US Bilateral Trade Agreement delivers comprehensive tariff rationalisation, zero-duty access across large product categories, enhanced digital and technology cooperation, and a carefully calibrated framework to safeguard India’s farmers, MSMEs and domestic industry, according to an official statement.

With India’s total exports to the United States standing at $86.35 billion in 2024, the agreement significantly enhances competitive access across key sectors, including textiles, leather, gems and jewellery, agriculture, machinery, home decor, pharmaceuticals, and technology-driven industries.

Under the agreement, tariffs on $30.94 billion worth of these exports have been reduced from 50 per cent to 18 per cent, while tariffs on another $10.03 billion have been reduced from 50 per cent to zero. This means a substantial share of Indian goods entering the U.S. market will now face either sharply lower tariffs or completely duty-free access, significantly improving price competitiveness.

IANS