India's trade deficit hits record USD 41.68 bn in Oct, thanks to gold imports

The impact of high tariffs imposed by the US showed on Indian exports for the second month in October, when they contracted by 11.8 per cent to $34.38 billion. The trade deficit widened to a record high of $41.68 billion, mainly due to a jump in gold imports.

Government data released on Monday (November 17) showed that the country's imports jumped 16.63 per cent to an all-time high of $76.06 billion due to high inbound shipments of gold, silver, cotton raw/waste, fertiliser, and sulphur.

In September, the trade gap widened to $31.15 billion, the highest in over a year.

Precious metal imports rise astronomically

While gold imports rose by 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.

Also read: US tariffs hit Indian exports for second month in October

During April-October this fiscal year, exports increased marginally by 0.63 per cent to $254.25 billion, and 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 period during April-October 2024.

Key segments contract

Briefing the media on the data, Commerce Secretary Rajesh Agrawal said that despite global uncertainties, “we are holding our ground”.

He also said that the fall in exports in the last month can also be attributed to the base effect ($38.98 billion in October 2024).

Key segments such as engineering goods, petroleum products, gems and jewellery, apparel and textiles, organic and inorganic chemicals, pharmaceuticals, and plastic goods recorded noticeable contraction, weighing down the overall export performance.

Also read: Tariff cut by Trump brings major relief to Indian exporters

Handicrafts, carpet, leather, iron ore, tea, rice, tobacco, spices and oil meals, too, recorded negative growth in exports in October.

Petroleum product shipments dipped 10.5 per cent to about $4 billion, while engineering goods shipments fell 16.71 per cent to $9.37 billion.

The US has imposed hefty 50 per cent tariffs on Indian goods, which are impacting the country’s exports.

‘Mirrors global economic slowdown’

Federation of Indian Export Organisations (FIEO) President SC Ralhan told PTI the export contraction mirrors the broader global economic slowdown, marked by geopolitical uncertainties, subdued demand in multiple major markets, and persistent volatility in commodity prices.

Also read: India WPI drops to 27-month low in October

Expressing concern over the widening trade gap, he urged decisive and timely policy intervention.

He reiterated the need for enhanced export support measures, faster release of benefits under various schemes, improved and affordable credit access, and reduction of compliance burdens so that exporters can remain competitive in a challenging global environment.

Provisional figures say the estimated value of services export for October was $38.52 billion as compared to $34.41 billion in the same month last year.

(With agency inputs)