India's trade deficit has significantly increased, reaching $34.68 billion in January 2026 compared to $25.04 billion in December 2025. This sharp rise has been attributed to a substantial increase in imports of precious metals, particularly gold and silver. The soaring demand for gold has been influenced by the wedding season in the domestic market, as well as increased investment in gold as a financial asset.

In addition to the increase in imports, India's total exports have seen a decline, dropping to approximately $36.56 billion in January 2026 from $38.51 billion in December 2025. The sharp contrast between the rising import figures and the decreasing export numbers has raised concerns among government officials about the sustainability of the trade balance. The government is likely to analyze the situation as they seek to manage foreign trade and ensure economic stability.

The estimated value of gold imports in January 2026 reached around $12.07 billion, which is significantly higher than about $4.13 billion in December 2025. This surge indicates a robust investment interest in gold Exchange-Traded Funds (ETFs) and reflects changing consumer behavior regarding wealth storage, especially during celebratory periods like weddings. As the government grapples with these developments, there is heightened pressure to find ways to stabilize and rebalance the trade deficit issue.