India’s exports contracted 11.8 per cent to $34.38 billion in October on account of the impact of high tariffs by the US, while the trade deficit widened to a record high of $41.68 billion, mainly due to a jump in gold imports.
Photograph: Mike Blake/Reuters
According to government data released on Monday, the country’s imports jumped 16.63 per cent to an all-time high of $76.06 billion due to high inbound shipments of the yellow metal, silver, cotton raw/waste, fertiliser, and sulphur.
In September, the trade gap widened to $31.15 billion, the highest in over a year.
While gold imports rose about 200 per cent to $14.72 billion, silver rose 528.71 per cent to $2.71 billion during October.
Crude oil imports dipped to $14.8 billion in October from $18.9 billion in the same month last year.
During April-October this fiscal year, exports increased marginally by 0.63 per cent to $254.25 billion, and imports rose 6.37 per cent to $451.08 billion.
Merchandise trade deficit during April-October 2025 was $196.82 billion as compared to $171.40 billion in the same period during April-October 2024.
Briefing the media on the data, Commerce Secretary Rajesh Agrawal said, despite global uncertainties, “we are holding our ground”.
He also said that the fall in exports in the last month can also be attributed to the base effect ($38.98 billion in October 2024).
Key segments such as engineering goods, petroleum products, gems and jewellery, apparel and textiles, organic and inorganic chemicals, pharmaceuticals, and plastic goods witnessed noticeable contraction, weighing down the overall export performance.
Handicrafts, carpet, leather, iron ore, tea, rice, tobacco, spices and oil meals, too, recorded negative growth in exports in October.
Petroleum product shipments dipped 10.5 per cent to about $4 billion, while engineering goods shipments fell 16.71 per cent to $9.37 billion.
The US has imposed hefty 50 per cent tariffs on Indian goods, which are impacting the country’s exports.
Federation of Indian Export Organisations (FIEO) president S C Ralhan said the export contraction mirrors the broader global economic slowdown, marked by geopolitical uncertainties, subdued demand in multiple major markets, and persistent volatility in commodity prices.
Expressing concern over the widening trade gap, he urged decisive and timely policy intervention.
He reiterated the need for enhanced export support measures, faster release of benefits under various schemes, improved and affordable credit access, and reduction of compliance burdens so that exporters can remain competitive in a challenging global environment.
As per the provisional figures, the estimated value of services export for October is $38.52 billion as compared to $34.41 billion in the same month last year.
During the first nine months of this fiscal year, exports stood at $237.55 billion as compared to $216.45 billion in April-October 2024.
Aditi Nayar, chief economist, Icra Ltd, said merchandise exports declined to an 11-month low of $34.4 billion in October amid a double-digit contraction in both oil and non-oil exports.
