Trade deficit widens to record $41.68 bn in October

New Delhi: India’s exports contracted 11.8 per cent to $34.38 billion in October on account of the impact of high tariffs by the US, while the trade deficit widened to a record high of $41.68 billion mainly due to a jump in gold imports. According to government data released on Monday, the country’s imports jumped 16.63 per cent to $76.06 billion due to high inbound shipments of the yellow metal, silver, cotton raw/waste, fertiliser, and sulphur. In September also, the trade gap widened to $31.15 billion, the highest in over a year.

While gold imports rose about 200 per cent to $14.72 billion, silver rose 528.71 per cent to $2.71 billion during October. Crude oil imports dipped to $14.8 billion in October from $18.9 billion in the same month last year. During April-October this fiscal year, exports increased marginally by 0.63 per cent to $254.25 billion, imports rose 6.37 per cent to $451.08 billion. Merchandise trade deficit during April-October 2025 was $196.82 billion as compared to $171.40 billion in the same month during April-October 2024.

Briefing the media on the data, Commerce Secretary Rajesh Agrawal said despite global uncertainties, “we are holding our ground”. He also said that fall in exports in the last month can also be attributed to base effect ($38.98 billion in October 2024). Key segments such as engineering goods, petroleum products, gems and jewellery, apparels and textiles, organic and inorganic chemicals, pharmaceuticals, and plastic goods witnessed noticeable contraction, weighing down the overall export performance.