Trade Deficit Widens In October As Gold Imports Rise; US Top Export Destination Despite Tariffs

India's trade deficit widened in October, driven by higher imports and marginal dip in exports. The combined trade deficit was $21.8 billion last month, compared to $9.05 billion in the same period last year, as per data released by the government on Monday.

Exports dipped from $73.4 billion in October 2024 to $72.9 billion last month. Imports jumped to $94.7 billion to $82.4 billion.

The government attributed the rise in deficit to higher gold imports during the festive season, despite high prices.

"Gold imports have seen additional $9.8 billion this year. Silver imports have also grown. Combining these two give us additional trade deficit. On cumulative basis, we're still good," said Commerce Secretary Rajesh Agrawal.

The US remained India's top export destination during April-October 2025, at $52.15 billion. However, in September and October shipments fell. The sectors driving growth include electronic goods, engineering goods, drugs, chemicals, and textiles.

The Trump administration imposed a 50% tariff on most Indian goods, half of which is a penalty for purhase of Russian oil.

In terms of merchandise, exports fell for the first time this year by $4 billion due to high base effect and decline in shipments to the US from $6.9 billion to $6.3 billion year-on-year, the official said.

"The reciprocal tariffs are affecting certain sectors. We are seeing a dip there. The export declined to Singapore also, largely on petroleum exports," he said.