India faces unprecedented trade deficit in October, driven by soaring gold imports 

India reported an all-time high merchandise trade deficit for October, reaching $31.46 billion, surpassing economists' predictions of $20.50 billion. The deficit was attributed in part to a substantial surge in gold imports during the festive season, a trend that significantly impacted the trade balance.

According to Reuters, government data revealed that while merchandise exports amounted to $33.57 billion, imports skyrocketed to $65.03 billion, reflecting a notable increase compared to the figures from the same period last year. The festive demand, particularly during Diwali, India's festival of lights, contributed to the surge in imports.

Trade ministry officials emphasised the notable spike in gold imports, which surged by 95 per cent year-on-year, reaching $7.23 billion in October alone.

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Merchandise exports for the April-October period totalled $244.89 billion, while imports for the same duration reached $391.96 billion. The data indicated a broader trade scenario for India, reflecting the cumulative trade performance over the past seven months.

In October, there were $28.70 billion in services exported and $14.32 billion in services imported. September saw $14.91 billion in imports and $29.37 billion in services exports.

(With inputs from Reuters)

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