India's goods trade deficit widens to $27.14 billion in October as imports surpass exports

However, imports also rose by 3.9 percent during the same period, widening the trade deficit.

On a sequential basis, the goods trade deficit expanded significantly to $27.14 billion in October, up from $20.8 billion in September, driven by faster import growth.

While exports increased 13.4 percent month-on-month, imports surged by nearly 20 percent. 

"Despite global volatility, Indian exporters have shown resilience and delivered strong results," said Commerce Secretary Sunil Barthwal.

He expressed optimism that India could surpass its target of $800 billion in overall exports (goods and services) for the current fiscal year if the trend continues. 

Year-on-year, India's goods trade deficit in October narrowed by $3.29 billion compared to October 2023. 

Key contributors to export growth included engineering goods (up 39.7 percent), electronic goods (up 45.69 percent), and organic and inorganic chemicals (up 27.35 percent).

On the import side, vegetable oil shipments saw a 36 percent increase from September, while gold imports rose sharply to $7.13 billion from $4.39 billion.

Crude oil imports also increased to $18.2 billion, up from $12.5 billion the previous month. 

The commerce ministry estimates a 21.3 percent year-on-year rise in services exports for October, while imports in this category are expected to decline by 20.8 percent.

As a result, the overall trade balance, including goods and services, is estimated at $10.12 billion for October, compared to $15.85 billion in the same month last fiscal year. 

For the April-October period, merchandise exports totaled $252.28 billion, up from $244.51 billion in the same period last year.

However, imports during this period increased by $22.75 billion. 

The merchandise trade deficit for April-October 2024 stood at $164.65 billion, widening from $149.67 billion recorded in the same period a year earlier.