India said on Monday that bilateral merchandise trade with the United States has increased by about 8% to more than $106 billion in the ten months through January and a proposed trade pact between the two countries will further benefit both.

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.

India’s merchandise trade deficit rose to a two-month high of $22.99 billion in January on the back of higher imports. Economists had expected the January trade deficit to be $22.35 billion, according to a Reuters poll.