India's merchandise trade deficit widened to a record high of $41.68 billion in October on the back of surge in imports of precious metals like gold and silver and fall in petroleum exports, the data released by the commerce ministry revealed on Monday.
Overall trade deficit widened to a $21.80 billion in October. The sudden surge in the imports of the precious metals has been primarily attributed to pent-up demand, festive buying and industrial requirements. Gold imports went up by nearly 200% to $14.72 billion in October 2025 from $4.92 billion in October 2024. Silver imports during April-October 2025 also registered a growth of 138%, with a total import value coming at $5.9 billion over the same period last year. On the other hand, there has been a significant fall in the merchandise exports, primarily due to the fall in petroleum exports to Singapore and Netherlands.
Overall petroleum product exports went down by more than 16% from $41.06 billion in April-October 2024 to $34.36 billion in the same period this year. “Gold imports have increased despite high global prices and we've had a very good Diwali season,” Commerce Secretary Rajesh Agrawal said while addressing the press. “Silver imports have also grown. When combined, these two categories explain the additional deficit. But on a cumulative basis, we’re still good.”
Total exports (merchandise and services combined) for October 2025 went down by 0.68% as it stood at $ 72.89 billion as compared to $73.39 billion a year ago. On the contrary, the imports have gone up nearly 15% year-on-year to $94.70 billion. For the month of October, merchandise exports were down 11.8% to $34.38 billion in October, while merchandise imports went up 16.63% to $76.06 billion.
Despite facing headwinds, merchandise exports to the US climbed to $6.3 billion in October, a 14.5% rise from September and the first monthly rise since May despite imposition of 50% tariff. Key segments such as gems and jewellery, organic and inorganic chemicals also witnessed noticeable contraction from the previous year, weighing down the overall export performance.
Meanwhile, exports to China surged 24.77%, climbing to $10.03 billion from $8.04 billion in the same period last year.