India’s goods trade deficit widened to $39.88 billion in October, its highest in a year, as a rise in oil costs and gold purchases ahead of Diwali lifted the import bill. Merchandise exports reached a monthly record, but imports increased by nearly three times as much in dollar terms as they did from September to October.
Oil and gold lift the import bill
Figures released by India’s commerce ministry on Friday showed goods imports rose to $89.35 billion from $74.61 billion in September, while exports increased to $49.47 billion from $44.40 billion. The deficit widened from $30.21 billion, exceeding the $32.25 billion forecast in a Reuters poll. It remained below the $42.58 billion recorded in October last year.
Imports of petroleum products, mainly crude oil, rose 54.3% from a year earlier to $22.82 billion. India imports about 85% of the crude oil it consumes, leaving its import bill sensitive to swings in global prices. Gold imports more than tripled from September to $5.51 billion as jewellers and households bought ahead of Diwali, when gold purchases are traditionally considered auspicious.
Export gains extend beyond oil
Goods exports were about 45% higher than a year earlier. Engineering goods shipments rose 36% to $12.74 billion, while gems and jewellery exports climbed 40% to $3.21 billion. Exports excluding petroleum, gems and jewellery rose nearly 33% to $37.38 billion. Shipments to the United States increased 39.3% to $8.72 billion.
Services offset part of the goods gap
The ministry estimated services exports at $40.51 billion and services imports at $20.72 billion. The resulting surplus offset roughly half the merchandise deficit, leaving an estimated combined goods and services trade gap of about $20.1 billion for the month.
The rupee closed at 94.24 to the US dollar on Friday, down 0.2% on the day and 0.3% over the week. Higher US Treasury yields and renewed pressure from oil prices weighed on the currency after foreign portfolio inflows had helped it reach a six-month high earlier in the week.
Newshub Editorial in Asia – 14 November 2026
India’s goods trade deficit widened to $39.88 billion in October, its highest in a year, as a rise in oil costs and gold purchases ahead of Diwali lifted the import bill. Merchandise exports reached a monthly record, but imports increased by nearly three times as much in dollar terms as they did from September to October.
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