India's merchandise trade deficit widened to $39.88 billion in October 2026, exceeding economists' estimate of $33.3 billion, as imports rose 16.5% year-on-year to $89.35 billion, according to Bloomberg data.
Merchandise exports increased 45% year-on-year to $49.47 billion, their highest-ever monthly level, according to Commerce Secretary Rajesh Agrawal. However, the increase in exports was not enough to offset the higher import bill.
Including services, India's total exports stood at $89.9 billion in October. Services exports were estimated at $40.51 billion.
Agrawal said merchandise exports reached a new monthly peak of $49.47 billion in October, with growth spread across sectors and export destinations.
As many as 43 of India's top 50 export destinations recorded positive growth during the month, he said.
Spain, South Africa, Egypt, Hong Kong, Malaysia, Ghana, Turkey, Oman, the UK and Mexico were among the markets that recorded export growth of more than 50%.
Exports to China, Japan and the US grew between 39% and 48%, according to Agrawal.
Petroleum products, electronics, gems and jewellery, processed food and engineering goods were among the leading contributors to merchandise exports during the month.
Agrawal said exports to India's free trade agreement partner markets performed well in October.
Trade with the Middle East also showed signs of recovery following the slowdown caused by the West Asia conflict. Exports to the region grew 4% in October, he said.
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