India's trade deficit jumped to $39.88 billion in October 2026, the highest in a year, exceeding economists' expectations amid a sharp rise in imports.
Imports reached $89.35 billion, way up from September, while exports grew too but only to $49.47 billion, showing that the gap is widening.
India's 85% crude reliance raises costs
The main culprit? Rising energy prices and global market uncertainty, especially with ongoing tensions in West Asia.
Since India imports about 85% of its crude oil, it's feeling the pinch more than most.
Even though merchandise exports are up, high import bills, especially for oil, are keeping the pressure on.