India’s goods trade deficit hit an all-time high of $41.7 billion in October as gold imports surged on festive season demand, while exports to U.S. bore the brunt of steep tariffs.
The deficit, which was sharply wider than Reuters poll estimates of $28.8 billion, topped the previous all-time high of $37.8 billion in November 2024, according to LSEG data.
During October, India imported gold worth of $14.7 billion, up nearly 200% from a year earlier, data from the country’s commerce ministry released Monday showed. Indian consumers are estimated to have bought gold worth $11 billion during the 5-day festival period in October.
The impact of tariffs was also visible in trade data as India’s exports to the U.S. fell for a second consecutive month since the 50% tariffs came into effect in August end. Shipments to U.S. fell 8.5% year on year in October to $6.3 billion.
Despite the decline, the U.S remained India’s largest exports destination during the first 7 months of this fiscal year, accounting for shipments worth $52 billion.
