India's exports to China double in Jan: RBI

India's merchandise trade deficit expanded in January 2026, as imports surged more rapidly than exports, according to the Reserve Bank of India's (RBI) latest bulletin. Notably, exports to China experienced significant growth, doubling compared to previous figures, while shipments to the United States saw a decline. The increase in imports included a dramatic rise in gold and silver, contributing to the widening trade gap. Despite these external challenges, the RBI emphasized the resilience of the domestic economy, with indicators such as energy consumption and digital payments reflecting sustained growth. Industrial activity remained robust, and the services sector continued to thrive. Additionally, improved investor sentiment and a turnaround in the Indian rupee were noted, owing in part to optimism surrounding trade agreements with the EU and the US. Globally, economic activity showed signs of resilience even amidst rising geopolitical tensions in regions like Venezuela and the Middle East. The RBI's assessment highlights that while external pressures exist, the foundations for long-term domestic growth remain strong, aided by fiscal consolidation and infrastructure development efforts.