India's October trade deficit widens to one-year high of $39.88 billion

what happened

Reuters, based on government export and import figures released on Friday, calculated that India's goods trade gap reached $39.88 billion in October. That is the widest in a year. Economists polled by Reuters had expected $32.25 billion, while September's shortfall stood at $30.21 billion.

Exports climbed to $49.47 billion from $44.40 billion a month earlier, and imports rose to $89.35 billion from $74.61 billion. Trade Secretary Rajesh Agrawal said India posted its highest-ever monthly goods exports in October 2026.

Import costs have surged as the Middle East conflict keeps disrupting global energy markets. India, the world's third-largest oil consumer, buys close to 85% of its crude abroad. Brent has eased to roughly $92 a barrel as hopes grow that the war will de-escalate after the US midterm elections.

why it matters

A wider gap between exports and imports raises demand for dollars to pay for purchases, which weighs on the rupee. Lower Brent prices offer some relief, but India's import bill remains heavily exposed to oil.

market impact

Indian rupee: wider trade gap lifts dollar demand, adding pressure on the currency

• ▼Indian rupee pressure down — wider trade gap lifts demand for dollars to pay for imports

tags

instruments