India’s October Merchandise Trade Deficit Widens to One-Year High of $39.88 Billion as Imports Surge
- On Friday, India's merchandise trade deficit widened to a one-year high of $39.88 billion in October. "India recorded its highest-ever monthly goods exports in October 2026," Trade Secretary Rajesh Agrawal said while releasing the figures.
- Inbound shipments jumped 19.7% in October, outpacing the 11.4% growth in exports. Imports surged to $89.35 billion from $74.61 billion in September, resulting in a wider trade gap despite record export performance.
- India imports nearly 85% of its crude oil needs, significantly impacting the trade balance. Persistent disruptions in the global energy market from the Middle East conflict have spiked import costs.
- The Reserve Bank of India raised the repo rate to 5.50% in October, shifting its monetary policy stance to calibrated tightening. The RBI also projected 7.1% real GDP growth and 5.2% inflation for FY27.
- New Delhi has implemented trade deals with the UK and New Zealand this year to diversify export markets. A landmark agreement with the European Union is expected to be implemented early next year.
19 Articles
19 Articles
Goods exports log all-time high of $50 billion in October, trade gap at year’s peak
While high oil prices amid the Iran war dominated goods trade, India’s non-oil exports also surged, with non-oil, non-gems and jewellery exports up nearly 32% to $37.38 billion from $28.11 billion.
India Exports Rise 29.9% to $90B as Imports Hit Record
India’s total merchandise and services exports rose 29.9% year over year to nearly $90 billion in October, while the trade deficit narrowed to $20.09 billion. Gem and jewelry exports climbed 34% to $2.92 billion, led by gold, silver and lab-grown diamonds, with growth also aided by a longer production window than a year earlier.
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India’s Trade Deficit Hits $39.88 Billion as Imports Surge to Record Levels
India's merchandise trade deficit climbed to a one-year high of $39.88 billion in October as imports grew significantly faster than exports. Despite achieving record monthly merchandise exports, rising energy costs and heavy reliance on imported oil continued to weigh on the country's trade balance.
India's Trade Deficit Widens as Festive Demand Boosts Imports
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