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India Leans on Trade Resilience to Press U.S. for Tariff Easing as Gold-Fueled Deficit Hits Record

Officials say the milder October drop in U.S.-bound shipments gives New Delhi leverage in talks.

Overview

  • Exports to the United States fell 8.6% year on year to $6.3 billion in October, a smaller decline than in September under tariffs reported as high as 50%.
  • India’s merchandise trade deficit widened to an all‑time high of $41.68 billion in October as gold imports jumped about 199% to $14.72 billion.
  • People familiar with negotiations say Washington could move toward a roughly 15% consolidated duty, with India prepared to lower tariffs on over 80% of goods while protecting sensitive sectors.
  • Exporters are retaining U.S. buyers through discounts and longer delivery windows and are diversifying to Africa and Europe, with apparel and footwear firms absorbing up to 20% in costs.
  • Shipments to China rose every month in April–October, up 24.7% year on year to $10.03 billion, helping cushion the impact from U.S. duties, as the government rolls out Rs 45,060 crore in exporter support including Rs 20,000 crore in credit guarantees.