Merchandise trade deficit widens to $42 bn on 200% surge in gold imports

The commerce ministry detailed the trade-data figures for October on November 17

India’s merchandise trade deficit widened to $41.68 billion in October, up from $32.15 billion in September, driven by a surge in gold imports and a sharp decline in exports, primarily to the United States, the Commerce Ministry said on November 17.

Merchandise exports for October 2025 stood at $34.38 billion, down nearly 12 percent year-on-year, while goods imports rose to $76.06 billion, up almost 17 percent over the same period.

In October, gold imports registered a growth of 199.2 percent to $14.7 billion against $4.9 billion in the year-ago period, while exports to the US slipped about 9 percent to $6.3 billion last month compared to $6.9 billion.

Commerce Secretary Rajesh Agarwal said India's goods exports fell for the first time this fiscal in October by about $4 billion. "One reason for fall in goods exports in October is due to a drop in exports to the US."

Services exports are expected to rise from $34.41 billion in October 2024 to $38.52 billion in October 2025, while imports in the category are seen increasing to $18.64 billion in the reported period from $17.23 billion in the same period last year.

India’s total exports (merchandise and services combined) for October 2025 is therefore estimated at $72.89 billion, a fall of 0.68 percent on-year, total imports for the month is seen at $94.70 billion, up 14.87 percent.

Cumulatively, merchandise exports during April–October 2025 stood at $254.25 billion, compared with $252.66 billion a year earlier, while goods imports were $451.08 billion versus $424.06 billion in April–October 2024.

As a result, the merchandise trade deficit during April–October 2025 widened to $196.82 billion, sharply higher than $171.40 billion in the same period of 2024.

"Overall exports (merchandise and services) for the first seven months of the current fiscal have seen a growth of 4.84 percent despite global turmoil in the trade space. In merchandise, growth has been limited at 0.63 percent growth in the first seven months of the current fiscal," Agarwal said during a press briefing.