A surge in gold imports takes India’s Oct trade deficit to a record high

India's trade deficit widened to a record high in October on higher imports. The trade deficit came at a record high of $31.46 billion for the month of October, a 18% increase from $26.3 billion in the year-ago period.

The jump in trade deficit was largely led by a 95% surge in gold imports. On sequential basis, gold imports surged to $7.23 billion, as compared to $4.1 billion in the previous month.

According to the data by the World Gold Council, gold demand in India rose 10% to 210.2 tonnes during the third quarter of the current calendar year amid softening of gold prices and festive demand.

Overall, the merchandise exports came at $33.57 billion, 6% up from $31.60 billion in October 2022. On the other hand, merchandise imports were at a 15 month high of $65.03 billion, 11% up from $57.91 billion year-on-year.

However, for the period of April to October, the exports have fallen 7% year-on-year, while the imports were down 8.95% from the corresponding period in the previous year.