India's trade deficit widens amid surge in gold imports
What's the story
India's merchandise trade deficit widened sharply to $41.68 billion in October, from $32.15 billion in September, the Ministry of Commerce and Industry announced on November 17. The widening gap was mainly due to a massive spike in gold imports, which soared by nearly 200% year-on-year (YoY) during the month under review. Gold imports for October stood at $14.7 billion, up from just $4.9 billion a year ago.
Trade balance
Merchandise exports and imports figures
In October 2025, India's merchandise exports were recorded at $34.38 billion while imports stood at a whopping $76.06 billion. The stark difference between these two numbers highlights the country's growing trade deficit for the month. Commerce Secretary Rajesh Agarwal said that this was the first time in the current fiscal year that India's goods exports had fallen by some $4 billion in October alone.
Service sector
Services exports and imports show growth
Despite the fall in goods exports, India's services sector showed a positive trend. Services exports increased from $34.41 billion in October 2024 to $38.52 billion in October 2025. Similarly, services imports also saw an increase during this period, rising from $17.23 billion last year to $18.64 billion this year.