By Manoj Kumar
NEW DELHI (Reuters) -India’s merchandise trade deficit widened to a record high of $41.68 billion in October, due to an increase in gold imports and a decline in U.S.-bound exports, government data showed on Monday.
The trade deficit had widened to a 13-month high of $32.15 billion in September. In August 2024, the deficit stood at $35.62 billion, according to data from the Reserve Bank of India.
Economists had expected the October trade deficit to be $28.8 billion, according to a Reuters poll, compared to $32.15 billion in the previous month.
Exports to the U.S. fell nearly 9% year-on-year last month to $6.31 billion from $6.91 billion a year ago, and increased from $5.47 billion in September, as tariffs hit shipments of goods such as textiles, shrimp, and gems and jewellery, data released by the Commerce Ministry showed.
Imports from the U.S. rose to $4.47 billion in October from $3.98 billion in the previous month.
Gold imports stood at $14.7 billion compared with $9.6 billion in September.
Overall merchandise exports fell to $34.38 billion last month from $36.38 billion in September, while imports climbed to $76.06 billion from $68.53 billion.
U.S. President Donald Trump’s administration imposed steep tariffs of up to 50% on Indian shipments at the end of August. October is the second full month when the tariffs remained in place, even as New Delhi and Washington continue the negotiations.
(Reporting by Manoj Kumar in New Delhi; Writing by Shubham Batra; Editing by Mrigank Dhaniwala and Eileen Soreng)
Comments