India’s trade balance deteriorated in October as exports declined and imports rose sharply, according to data released by the Commerce Ministry on Monday. The ministry reported that merchandise exports fell 11.8 per cent to USD 34.38 billion, marking a notable setback for outbound shipments after a period of marginal improvement earlier in the fiscal year.
Imports, however, saw a strong surge, increasing 16.63 per cent to USD 76.06 billion during the month. This sharp rise pushed the trade deficit to USD 41.68 billion, signalling widening pressure on the country’s external account.
Pankaj Chadha, Chairman, EEPC India, “The decline in engineering goods shipments in October was expected, considering that the 50 per cent tariff imposed by the US came into force in the last week of August. With the government support, the engineering goods sector has managed to minimise the impact of the US tariffs.”
A major factor behind the rise in imports was the significant increase in inbound shipments of precious metals. Gold imports climbed to USD 14.72 billion in October, nearly tripling from USD 4.92 billion recorded in the same month last year. Silver imports also increased, adding to the overall rise in import bills.
India’s exports to the United States, its largest export destination, recorded a decline as well. Shipments to the US fell to USD 6.3 billion in October from USD 6.9 billion in the corresponding month a year earlier, Commerce Secretary Rajesh Agrawal said.
For the April–October period of FY26, exports registered a modest 0.63 per cent increase to USD 254.25 billion. Imports in the seven-month period rose 6.37 per cent to USD 451.08 billion, reflecting firm domestic demand, elevated commodity prices, and stronger inflows of key industrial goods.
“We expect steady growth in exports despite global uncertainties, given the recent government support of Rs 45,026 crores towards Export Promotion Mission and Credit Guarantee Scheme for Exporters,” said Ranjeet Mehta, CEO and Secretary General, PHDCCI. |
