Archive · 17 Nov 2025
India's Trade Deficit Surges to Record High in October
India's trade balance, which is the difference between what it sells and buys from other countries, reached its highest point ever in October.
This happened because India bought a lot more gold, and also because it sold fewer goods to the United States.
The US had put higher taxes, called tariffs, on Indian products, making them more expensive for Americans to buy.
Even though overall sales went down, India's purchases, especially of gold, went up significantly.
This is making the country buy more than it sells, leading to a larger trade deficit.
India's merchandise trade deficit reached a record high of $41.68 billion in October.
The deficit widened significantly from $32.15 billion in September.
Gold imports surged to $14.7 billion in October, contributing to the increased deficit.
Exports to the United States fell by nearly 9% year-on-year in October due to tariffs.
Overall merchandise exports decreased to $34.38 billion, while imports rose to $76.06 billion in October.
- Who
- India
- What
- Merchandise trade deficit widened to a record high
- When
- October
- Where
- India
- Why
- Increased gold imports and a decline in US-bound exports due to tariffs.
Impact of US Tariffs
Gold and Silver Import Surge
Exports to the US
Impact of US Tariffs
US tariffs of up to 50% imposed at the end of August have led to a nearly 9% year-on-year decline in India's exports to the US in October, affecting goods like textiles, shrimp, and gems and jewellery.
Gold and Silver Import Surge
While exports to the US have declined, overall merchandise exports in October saw a significant drop primarily due to increased imports of gold and silver.
- October Trade Deficit
- $41.68 billion
- September Trade Deficit
- $32.15 billion
- October Exports
- $34.38 billion
- October Imports
- $76.06 billion
- October Gold Imports
- $14.7 billion
- October Exports to US
- $6.31 billion
Sources
India’s coal imports rise 14% in September
India’s trade deficit widens to $41.68 billion in October on surge in gold, silver imports
Trump tariffs drag India’s US exports down 9% in October
India’s merchandise exports fall to $34.38 billion in October
India's Trade Deficit Widens to $41.68 Billion in October
India’s trade deficit hits record $41.68 bn in October on weak US exports, surge in gold imports
