Gold spike, Trump tariffs lift goods trade deficit to all-time high

Overall merchandise exports slipped to $34.38 billion from $36.38 billion in September and $38.98 billion a year earlier. Agarwal said India maintained steady export growth in the first seven months of FY25, even as global demand softened.

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Goods imports rose to $76.06 billion, up from $68.53 billion in September and $65.21 billion a year earlier.

(REUTERS)

Meanwhile, imports rose to $76.06 billion, up from $68.53 billion in September and $65.21 billion a year earlier. The result: A hefty trade deficit, which threatens to erode forex reserves, weaken the rupee, and raise inflationary pressure.

Jewellers reported strong festive buying and aggressive restocking ahead of Dhanteras and Diwali. Cumulative gold imports during April-October 2025 rose 21.4% in value terms from the same period last year, even as volumes remained below 2024 levels.

“The exponential rise in gold imports despite a fall in consumer demand suggests that buyers have been stocking the precious metal in anticipation of further price increases, hoping to secure significant gains late,” said Surendra Mehta, national secretary at India Bullion and Jewellers Association Ltd.