India's October trade deficit hits one-year high of $39.88 billion as gold imports jump
NEW DELHI: India’s merchandise trade deficit widened to a one-year high of $39.88 billion in October, exceeding forecasts as festive-season gold purchases and higher energy costs drove up imports. The deficit topped the $32.25 billion forecast in a Reuters poll and widened from $30.21 billion in September. The trade deficit last hit a record $42.58 billion in October 2025. Gold imports more than…
India's trade deficit widened to a one-year high of $39.88 billion in October, driven by increased gold imports and higher energy costs during the festive season. Gold imports more than tripled to $5.51 billion from $1.8 billion in September, as jewellers and consumers purchased more gold ahead of Diwali. The country, the world's second-largest gold consumer, relies heavily on imports to meet demand.
Additionally, higher energy costs due to disruptions in the Middle East oil market contributed to the deficit. Meanwhile, merchandise exports rose to $49.47 billion in October, marking India's highest monthly exports this year, while imports increased to $89.35 billion.
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