India’s October trade deficit at record high on gold imports surge

By Manoj Kumar

NEW DELHI (Reuters) -India’s merchandise trade deficit widened to a record high of $41.68 billion in October, due to an increase in gold imports and a decline in U.S.-bound exports, government data showed on Monday.

The trade deficit had widened to a 13-month high of $32.15 billion in September. In August 2024, the deficit stood at $35.62 billion, according to data from the Reserve Bank of India.

Economists had expected the October trade deficit to be $28.8 billion, according to a Reuters poll, compared to $32.15 billion in the previous month.

Exports to the U.S. fell nearly 9% year-on-year last month to $6.31 billion from $6.91 billion a year ago, and increased from $5.47 billion in September, as tariffs hit shipments of goods such as textiles, shrimp, and gems and jewellery, data released by the Commerce Ministry showed.

Imports from the U.S. rose to $4.47 billion in October from $3.98 billion in the previous month.

Gold imports stood at $14.7 billion compared with $9.6 billion in September.

Overall merchandise exports fell to $34.38 billion last month from $36.38 billion in September, while imports climbed to $76.06 billion from $68.53 billion.

U.S. President Donald Trump’s administration imposed steep tariffs of up to 50% on Indian shipments at the end of August. October is the second full month when the tariffs remained in place, even as New Delhi and Washington continue the negotiations.