200% spike in gold import drives trade deficit to $41.68 bn

Exports in Oct saw sharpest decline in 14 mths

- SHREYA NANDI

India's merchandise trade deficit widened to a record $41.68 billion in October, as gold imports trebled and outbound shipments registered their sharpest contraction in 14 months, according to data released by the commerce department.

Merchandise exports fell 11.8 per cent to $34.38 billion, an 11-month low, while goods imports grew 16.66 per cent to an all-time high of $76.06 billion.

Exports to the US fell 8.6 per cent to $6.3 billion in October, following the imposition of relatively high 50 per cent tariff on several Indian products. Exports to other key trade partners — the United Arab Emirates (-10.2 per cent), the Netherlands (-22.75 per cent) and the United Kingdom (-27.16 per cent) — also contracted.

The merchandise trade deficit had stood at $26.22 billion in October last year, and at 13-month high of $32.15 billion in September this year.

Gold imports surged 199.2 per cent year-on-year to $14.72 billion in October, fuelled by pent-up demand and the festival season. Silver imports rose sixfold to $2.72 billion, driven by increased shipments of plain silver from a free-trade agreement partner country, government officials said.