A surge in merchandise imports outpaced export growth, causing the trade gap to widen from $30.21 billion in September.
India's merchandise trade deficit climbed to $39.88 billion in October, according to government data released on Friday. This figure represents a one-year high and exceeds the $30.21 billion deficit recorded in September, according to reports by Deccan Chronicle and Firstpost.
The widening gap was driven by merchandise imports rising to $89.35 billion from $74.61 billion in the previous month. Financial Express noted that higher oil imports, gold purchases during the festive season, and electronic shipments for export production contributed to the increased foreign exchange outgo.
Despite the deficit, India recorded its highest-ever monthly export value of $89.99 billion in October. Commerce Secretary Rajesh Agrawal stated that total shipments, including merchandise and services, grew by 29.9 per cent. Merchandise exports specifically reached a new peak of $49.47 billion.
Agrawal noted that the export growth was broad-based, with 43 of the top 50 export destinations posting positive growth compared to 2025. He expressed hope that the country could reach the $1 trillion export landmark by the end of this financial year.
The country's crude oil imports rose 54.3 per cent to $22.81 billion during the month. Additionally, gold imports increased to $5.51 billion from $1.8 billion in September, according to Financial Express.
