India's trade deficit just broke its own record
India's trade deficit soared to an all-time high of $41.68 billion in October 2025.
What happened? Imports jumped, especially for gold and silver, while exports took a big hit—dropping nearly 12% compared to last year.
Gold rush and US tariffs shake things up
The spike in gold and silver imports came after a recent GST cut, showing how much demand there is at home.
Meanwhile, new US tariffs have made it tougher for Indian goods to reach American buyers, with exports to the US falling about 12% in September and nearly 9% in October.
Why it matters: Rupee takes a hit, inflation risks rise
This growing gap between what India buys and sells abroad is making the rupee weaker—it's now around ₹88.80 per dollar—and could push prices up at home.
The total trade deficit from April to October has already climbed higher than last year, raising concerns about currency stability and inflation going forward.