Goods Trade Deficit at Record $41.68 bn as Gold Imports Surge, Exports Fall
Merchandise trade deficit went up from $32.15 billion in September to $41.68 billion in October. In September itself, the trade deficit was at a 13-month high.
Chennai: India’s merchandise trade deficit ballooned to record high $41.68 billion in October as gold imports surged by close to $10 billion while exports declined by 11.8 per cent.
Merchandise trade deficit went up from $32.15 billion in September to $41.68 billion in October. In September itself, the trade deficit was at a 13-month high.
Imports jumped 16.63 per cent to $76.06 billion, while exports declined 11.8 per cent to $34.38 billion, exacerbating the trade imbalance. Higher imports were driven by gold and silver purchases.
Gold imports jumped to $14.72 billion in October compared to $4.92 billion in the same month last year, while silver imports also rose to $2.73 billion. The festive season demand amidst higher prices led to an additional $10 billion gold imports.
Hit by the US trade tariffs and general trade uncertainty, merchandise exports fell by 11.8 per cent to $34.38 billion against $38.98 billion in October 2024. Engineering goods exports were down by 16.7 per cent, cotton yarn, fabrics and made-ups were down by 13.3 per cent, man-made yarn, fabrics, made-ups by 11.75 per cent and apparels by 12.8 per cent. Gems and jewellery exports were down by 29.5 per cent, drugs and pharmaceuticals by 5.15 per cent, leather by 15.6 per cent, petroleum products by 10.5 per cent and organic and inorganic chemicals by 21 per cent. Among large export categories, electronic goods alone recorded 19 per cent growth.
Most of the export markets, except China, registered a decline in October. Exports to the US were down by 8.58 per cent, UAE 10.17 per cent, Netherlands 22.75 per cent, UK 27 per cent, and Germany 15.14 per cent. Exports to China grew by 42.35 per cent.
On the import front, shipments from Switzerland grew 403 per cent, mainly due to gold imports. Imports from China were up 15.63 per cent, UAE 14.38 per cent, the US 13.89 per cent and Hong Kong 93.98 per cent. Imports from Russia fell 27.7 per cent due to lower crude oil imports.
In the services segment, exports rose to $38.52 billion from $34.41 billion in October 2024. Services imports also increased, reaching $18.64 billion, up from $17.23 billion a year ago.