Trade deficit hits record high in Oct on gold rush

Exports to US up sequentially after four months, but down 8.5% y-o-y

- MUKESH JAGOTA

INDIA'S MERCHANDISE EXPORTS fell 11.8% in October on a strong base, while shipments to the US declined 8.5%, as exporters faced hefty additional tariffs of 50% in the biggest market, according to official data released on Monday.

Trade deficit widened to a record high of $41.68 billion in the month, as a surge in imports of high-priced gold during the festive season led to a spike in the import bill for the yellow metal to $14.72 billion from $4.92 billion in the year-ago month. Some of the decline in exports in October was due to the high base of October 2024, Commerce Secretary Rajesh Agrawal said.

The October exports to the US at $6.31 billion were higher than in September — the first month of the application of 50% additional tariffs — when the shipments were at $5.47 billion as against $6.21 billion in September 2024. Merchandise exports to the US recorded a 14.5% rebound from September and the first month-on-month rise since May. For April-October, exports to the US are up 10.14% to $52.12 billion.