India's October Trade Deficit Hits Record $41.68 Billion

India's trade deficit swelled to a record $41.68 billion in October 2025, driven by a sharp decline in exports amid U.S. tariffs and a surge in gold imports during the Diwali festival season. The figure, released by the commerce ministry on November 17, marked the widest gap on record and exceeded economists' forecasts of around $30 billion.

Exports fell 11.8 percent from the previous year to $34.38 billion, with shipments to the United States dropping 8.6 percent to $6.3 billion for the second straight month. The decline followed the imposition of 50 percent tariffs on Indian goods by President Donald Trump in late August, which have particularly affected labor-intensive sectors including textiles, leather, footwear, gems and jewelry. The U.S. remains India's largest export market, and the tariffs have disrupted supply chains and reduced competitiveness.

Imports, meanwhile, rose 16.6 percent to $76.06 billion, fueled largely by record-high purchases of gold and silver. Gold imports alone jumped nearly 200 percent to $14.72 billion, up from $4.92 billion a year earlier, as global prices hit all-time highs and demand spiked ahead of Diwali, the Hindu festival of lights celebrated...