India’s trade deficit widens to $41.68 billion in October on surge in gold, silver imports 

India’s merchandise trade deficit ballooned to $41.68 billion in October 2025, up sharply from $32.15 billion in September, according to official government data. The widening gap was driven by a strong surge in imports of gold and silver, largely due to Diwali demand, even as overall exports fell. 

Imports jumped 16.63% to $76.06 billion, while exports declined 11.8% to $34.38 billion, exacerbating the trade imbalance. The Commerce Secretary highlighted the “phenomenal” increase in precious metal imports, calling it a key factor in October’s trade deterioration. 

“Gold imports jumped to $14.72 billion in October compared to $4.92 billion in the same month last year,” he said, noting that silver imports also rose to $2.73 billion. 

October alone saw an additional $9 billion in gold imports, driven by festive demand, further weighing on the merchandise trade balance. In parallel, goods exports declined by $4 billion in the month. 

Despite the October setback, cumulative exports for April-October 2025 showed positive growth of 4.84%, with Q1 and Q2 exports marking the highest ever for the same period. 

Key Export & Import Trends (April-October 2025) 

Top export commodities included: 

• Engineering Goods ($68.73 billion) 
• Petroleum Products ($34.36 billion) 
• Electronic Goods ($26.28 billion) 
• Drugs & Pharmaceuticals ($17.87 billion) 
• Gems & Jewellery ($16.49 billion) 

Top import commodities included: 

• Petroleum, Crude & Products ($106.91 billion) 
• Electronic Goods ($65.73 billion) 
• Gold ($41.24 billion, up from $33.96 billion) 
• Machinery ($34.78 billion) 
• Transport Equipment ($18.42 billion) 

India’s merchandise exports stood at $34.38 billion in October 2025, while imports touched $76.06 billion, according to official data. In the services segment, exports rose to $38.52 billion from $34.41 billion in October 2024. Services imports also increased, reaching $18.64 billion, up from $17.23 billion a year ago.  

Bilateral trade performance 

Exports to the US dropped to $6.3 billion, compared to $6.9 billion in October 2024, as tariffs impacted key sectors like textiles, shrimp, and gems and jewellery, the Commerce Ministry said. 

To cushion the impact, the government had announced a relief package of over $5 billion aimed at easing working capital pressures and sustaining export momentum. The move will “strengthen liquidity, ensure smooth business operations, reinforce India’s progress towards achieving the $1 trillion export target,” it stated. 

Meanwhile, exports to China surged 24.77%, climbing to $10.03 billion from $8.04 billion in the same period last year. For October alone, exports to China rose to $1.63 billion, up from $1.14 billion. 

On the import side, China remained India’s top source, with imports rising from $66.13 billion to $73.99 billion. Imports also grew from the UAE, Russia, USA, and Switzerland. 

While festive gold demand skewed the trade balance in October, the Commerce Department is optimistic about November, citing momentum from the export promotion mission.