India’s October Exports Plunge 11.8% as Trade Deficit Hits Record $41.68 Billion
Key Takeaways:
- Exports fell to $34.38 billion in October, down 11.8% year-on-year
- Trade deficit widened to record $41.68 billion
- Gold imports surged 200% to $14.72 billion
- Multiple key export sectors witnessed contraction
India’s merchandise exports contracted sharply by 11.8% to $34.38 billion in October, while the trade deficit ballooned to a record $41.68 billion, according to government data released on Monday.
Import Surge Drives Record Deficit
Imports jumped 16.63% to an all-time high of $76.06 billion, primarily driven by massive increases in gold and silver shipments. Gold imports soared approximately 200% to $14.72 billion, while silver imports skyrocketed 528.71% to $2.71 billion during the month.
The October trade gap marks a significant increase from September’s $31.15 billion deficit, which was already the highest in over a year.
Sector-Wide Export Contraction
Multiple key export sectors recorded negative growth in October:
- Engineering goods: Down 16.71% to $9.37 billion
- Petroleum products: Down 10.5% to approximately $4 billion
- Gems and jewellery, apparel, textiles, chemicals, pharmaceuticals, and plastic goods also showed noticeable contraction
- Traditional exports including handicrafts, carpets, leather, iron ore, tea, rice, tobacco, spices and oil meals recorded negative growth
Fiscal Year Performance
During April-October 2025, exports showed marginal growth of 0.63% to $254.25 billion, while imports increased 6.37% to $451.08 billion. The merchandise trade deficit for the first seven months of the fiscal year stood at $196.82 billion, compared to $71.40 billion during the same period in 2024.
Commerce Secretary Rajesh Agrawal acknowledged the challenges, stating: “Despite global uncertainties, we are holding our ground.” He attributed the export decline partly to the base effect, noting that exports were $38.98 billion in October 2024.
Crude oil imports provided some relief, dipping to $14.8 billion in October from $18.9 billion in the same month last year.
