India’s October Trade Deficit Widens to $41.68 Billion as Exports Fall
India’s merchandise exports declined by 11.8% to $34.38 billion in October 2024, while imports surged by 16.63% to $76.06 billion, resulting in a significant trade deficit of $41.68 billion, according to official data released on Monday.
Key Takeaways
- Exports fell 11.8% to $34.38 billion in October
- Imports jumped 16.63% to $76.06 billion
- Trade deficit widened to $41.68 billion
- Gold imports surged to $14.72 billion from $4.92 billion year-on-year
Export-Import Performance Details
The sharp increase in imports was primarily driven by gold and silver shipments, with gold imports alone jumping to $14.72 billion compared to $4.92 billion in the same month last year. Exports to the United States declined to $6.3 billion in October from $6.9 billion in the corresponding month last year, Commerce Secretary Rajesh Agrawal confirmed.
During the April-October period of the current fiscal year, exports showed marginal growth of 0.63% to $254.25 billion, while imports increased by 6.37% to $451.08 billion, according to commerce ministry data.
RBI Extends Export Proceeds Timeline
In response to exporter stress, the Reserve Bank of India has extended the timeframe for bringing export proceeds into the country from 9 months to 15 months. This relief measure comes as exporters face challenges due to steep US tariffs imposed on Indian goods.
The United States implemented a 50% tariff on goods from India, which took effect on August 27, 2024. The regulatory changes were formalized through the Foreign Exchange Management (Export of Goods and Services) (Second Amendment) Regulations, 2025, as per a gazette notification dated November 13 signed by RBI Regional Director Rohit P Das.
This is the second time the RBI has provided such relief, having previously extended the timeframe to 15 months during the COVID-19 pandemic in 2020.
