New Delhi, Feb. 19 -- The widening of India's merchandise trade deficit can be attributed to a decline in exports and a marginal rise in imports amid prevailing global economic uncertainty.

India's merchandise trade deficit surged to USD 22.99 billion in January 2025, exceeding market expectations of USD 21.0 billion. This marks an increase from USD 21.94 billion in December 2024 and USD 16.56 billion in January 2024.

While both oil and gold deficits narrowed in January, the impact was offset by a sharp expansion in the non-oil non-gold (NONG) deficit.

The recent spike in oil prices to USD 78 per barrel warrants close monitoring, trends in services exports will also play a crucial role in shaping current account dynamics.

Sustained co...