India's trade deficit widens to $39.88 billion in October

India's merchandise trade deficit widened to a one-year high of $39.88 billion in the month of October. According to Reuters' calculations, this information has come to light from government export and import data. Economists had estimated this deficit to be $32.25 billion, which was $30.21 billion in the month of September. According to a Business Standard report, the country's exports rose to $49.47 billion in October, compared to $44.40 billion in September. On the other hand, the import figure reached $89.35 billion in October, up from $74.61 billion in September.

While releasing the data, Trade Secretary Rajesh Agarwal stated that India recorded its highest-ever monthly merchandise exports in October 2026. As the world's third-largest oil consumer, India has faced disruptions in the global energy market due to the ongoing conflict in West Asia, which has increased import costs. India imports about 85% of its oil requirement. However, amid hopes of peace following the Democrats' victory in the US midterm elections, Brent crude futures have fallen to around $92 per barrel, which comes as some relief for Asia's third-largest economy.

Indian exports have also seen steady growth throughout the year due to efforts to diversify markets and new trade agreements. New Delhi has implemented trade agreements with the UK and New Zealand this year, while a crucial agreement with the European Union is expected to come into effect early next year.

India, officially known as the Republic of India, is a country located in South Asia. It was the seventh-largest country in the world by area and the most populous country. It is bounded by the Indian Ocean to the south, the Arabian Sea to the south-west, and the Bay of Bengal to the south-east. It shared land borders with Pakistan to the west, China, Nepal, and Bhutan to the north, and Bangladesh and Myanmar to the east.