India’s Trade Deficit Hits Record $41.68 Billion in October
India’s merchandise trade deficit soared to an unprecedented $41.68 billion in October 2025, driven by a massive surge in gold and silver imports coupled with declining petroleum exports, according to commerce ministry data released Monday.
Key Takeaways
- Gold imports surged nearly 200% to $14.72 billion in October
- Silver imports grew 138% during April-October period
- Petroleum exports fell over 16% year-on-year
- Overall merchandise exports declined 11.8% while imports rose 16.63%
Precious Metals Drive Import Surge
The dramatic increase in precious metal imports is attributed to pent-up demand, festive buying during Diwali, and industrial requirements. Gold imports jumped to $14.72 billion in October 2025 from $4.92 billion in the same month last year, while silver imports reached $5.9 billion during the April-October period.
Export Challenges and Bright Spots
Petroleum exports declined significantly, dropping from $41.06 billion to $34.36 billion during the April-October period compared to last year. Key sectors including gems and jewellery, and organic/inorganic chemicals also contracted.
However, some positive trends emerged. Exports to the United States rose 14.5% to $6.3 billion in October – the first monthly increase since May despite 50% tariffs. Meanwhile, exports to China surged 24.77% to $10.03 billion.
“Gold imports have increased despite high global prices and we’ve had a very good Diwali season,” Commerce Secretary Rajesh Agrawal stated. “Silver imports have also grown. When combined, these two categories explain the additional deficit. But on a cumulative basis, we’re still good.”
Total exports (merchandise and services combined) for October 2025 stood at $72.89 billion, a slight 0.68% decrease from $73.39 billion a year earlier. Imports, however, climbed nearly 15% year-on-year to $94.70 billion.
