India's merchandise trade deficit rose to a one-year high of $39.88 billion in October, according to a Reuters calculation based on government export and import data released on Friday, November 13.

Source: Reuters via The Hindu BusinessLine

Merchandise exports rose to $49.47 billion in October from $44.40 billion in the previous month, while imports rose to $89.35 billion against $74.61 billion in September, government data showed. Economists had forecast a deficit of $32.25 billion in a Reuters poll, compared with a deficit of $30.21 billion in September.

$49.47 billionMerchandise exports in October — highest-ever monthly figure
$89.35 billionMerchandise imports in October
$39.88 billionMerchandise trade deficit — one-year high

"India recorded its highest-ever monthly goods exports in October 2026," Trade Secretary Rajesh Agrawal said while releasing the trade figures, IANS reported.

Source: IANS via Hi India

Services soften the overall gap

Counting services, India's total exports surged by nearly 30 per cent year-on-year to $89.99 billion in October, driven by the record merchandise exports and an estimated $40.51 billion in services exports. On that broader measure, the overall trade deficit narrowed to $20.09 billion from $25.15 billion in the year-ago month. The Commerce Ministry clarified that the October services figures are estimates, as the latest actual Reserve Bank data pertains to September.

India, the world's third-largest oil consumer, imports nearly 85 per cent of its oil needs, and its import costs have spiked after persistent disruptions in the global energy market from the Middle East conflict, Reuters noted. Commerce and Industry Minister Piyush Goyal has expressed confidence that India is on track to achieve its export target of one trillion dollars this year, IANS reported.

Gold imports fall sharply from a year earlier

In the same Commerce Department data, India's gold imports fell 62.57 per cent to $5.51 billion in October from $14.72 billion in October 2025, and declined 39.9 per cent to $24.78 billion during April-October from $41.24 billion a year earlier, ANI reported. Gems and jewellery exports rose to $18.50 billion during April-October from $16.49 billion in the corresponding period of the previous financial year.

Source: ANI via The Hindu BusinessLine