India’s trade deficit hits record $41.68 billion in October on export slump, gold import surge
Imports surged 16.63% to $76.06 billion, driven by a massive 199% rise in gold imports to $14.72 billion ahead of the festival season. Silver imports also jumped to $2.72 billion.
| Photo Credit:
KK Mustafah
India’s trade deficit widened to a record $41.68 billion in October 2025 as exports contracted 11.8 per cent (year-on-year) to $34.48 billion during the month, hit by US tariffs.
Imports rose 16.63 per cent to $76.06 billion in October 2025, primarily due to gold imports surging 199.22 per cent to $14.72 billion, per quick estimates shared by the Commerce Department on Monday.
Exports to the US declined for the second consecutive month, falling 8.7 per cent to $ 6.3 billion in October 2025, as the impact of the 50 per cent US tariffs imposed in August kicked in.
Global demand weakens
India’s exports to other major destinations, too, declined, including to the UAE, the UK, the Netherlands, Germany and Bangladesh, amidst continued global turmoil. The only exception was China, India’s fourth-largest export destination, where exports increased by 42.35 per cent to $1.62 billion.
Commerce Secretary Rajesh Agrawal said the sharp rise in trade deficit to $41.68 billion in October 2025 from $26.23 billion in October 2024 was primarily due to an increase in imports of gold and silver. Silver imports rose to $2.72 billion during the month, compared with $0.43 billion in October 2024.
“Whatever suppression in demand and imports that we have seen in the last six months due to high prices had probably led to pent up demand which resulted in a surge in imports during Diwali and the festival season,” he explained.
Policy support ahead
Agrawal expressed hope that the ₹25,000 crore export promotion mission, cleared by the Union Cabinet last week for a period of six years, coupled with relief measures announced by the RBI, will help boost exports in the months to come.
In April-October 2025, exports increased marginally by 0.63 per cent to $254.25 billion, while imports increased by 6.37 per cent to $451.08 billion. The trade deficit was $196.82 billion, compared to $171.40 billion during April-October 2024.
Published on November 17, 2025
