India's Trade Deficit Narrows as Gold Imports Decline in January 2025

India's trade deficit decreased to USD 20.88 billion in January 2025 due to reduced gold imports influenced by rising prices and the end of the festive season. However, increased crude oil prices widened the oil trade deficit. The country's crude imports saw significant growth, notably from Russia and the US.

India's merchandise trade deficit narrowed to USD 20.88 billion in January 2025 from USD 21.94 billion in December 2024, according to Union Bank of India.

A decline in gold imports primarily drove this improvement, attributed to rising gold prices and the conclusion of the festive season, reducing demand.

However, India's oil trade deficit widened slightly due to increased global crude prices, leading to a substantial rise in crude imports, notably from Russia and the US, despite declining imports from Iraq.

(With inputs from agencies.)