Now Reading: India’s trade gap hits $40 bn in October, exports at record
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India’s trade gap hits $40 bn in October, exports at record
The Story in Brief
India's merchandise trade deficit widened to $39.88 billion in October, driven by higher imports of gold and crude oil, according to commerce ministry data. Goods imports rose to $89.35 billion while exports hit a record $49.47 billion, up 45.06% year-on-year, the ministry said. Aaj Tak reports the deficit raised concerns, but Axis Bank Research expects the current account deficit to stay near 1% of GDP for FY2026-27, supported by a services surplus and a return of foreign portfolio investment.
Business Today, citing Commerce Secretary Rajesh Agarwal, said total exports of goods and services reached a record $89.99 billion in October. Gold imports fell sharply to $5.51 billion from $14.72 billion a year ago. The combined goods-and-services trade deficit stood at $20.09 billion. Agarwal noted that Indian goods saw rising demand in 43 of the top 50 export markets. The two outlets disagree on the direction of the trade deficit: Business Today reports the goods deficit shrank from $42.58 billion in October 2025, while Aaj Tak frames it as a jump to $40 billion without the year-ago comparison.
Indian Opinion Analysis
The two outlets frame the same data from opposite directions. Aaj Tak leads with the $40 billion trade deficit, emphasises the risk to the rupee and quotes Axis Bank's reassurance that the deficit alone will not pressure the currency. Business Today leads with the record $49.47 billion goods export, highlights the year-on-year decline in the merchandise trade deficit and reports falling gold imports. Neither source omits the other's headline figure, but each buries the framing the other leads with. A balanced reading combines the record exports with the still-large deficit, noting that the combined goods-and-services deficit of $20.09 billion is a more complete measure. The key tension is whether the trade deficit or the export surge is the more telling indicator, the next data point is the October current account figure, expected later this fiscal year.
Coverage: 2 sources, 2 neutral
Sources (2): aajtak.in (neutral report), businesstoday.in (neutral report)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Methodology and corrections.
