India’s trade deficit hit a record $41.68 billion in October. High gold imports and declining exports to the US are the main factors behind the deficit’s growth.
India’s trade deficit rose to an all-time high in October, underpinned by high gold imports. However, the development of Indian trade was also significantly affected by the decline in exports to the USA. Reuters reported about it.
- India’s trade deficit reached an all-time high in October.
- The main reason was increased gold imports to USD 14.7 billion.
- India’s exports to the US fell due to high US tariffs.
India’s trade deficit reached $41.68 billion (€35.95 billion) in October, compared to $32.15 billion in September. Analysts expected the trade deficit to fall to USD 28.8 billion.
Gold imports are rising
The development of trade significantly influenced the import of gold. India imported gold worth USD 14.7 billion in October. By comparison, in the previous month, imports of this commodity amounted to USD 9.6 billion.
In addition, exports to the US fell. Compared to the same month last year, it decreased by almost 9%. The reason is high American import duties, which have affected several Indian products such as textiles, gems, jewelry and oysters.
(1 EUR = 1,1593 USD)
