Overview
- Government data show exports fell 11.8% to $34.38 billion while imports rose 16.63% to $76.06 billion, widening the merchandise gap to an all-time high.
- Gold purchases jumped to $14.72 billion—about 200% higher year on year—with silver near $2.7 billion, which officials tied to Diwali buying and pent-up demand.
- Economists polled by Reuters had expected a $28.8 billion deficit, making the outturn a sizable negative surprise versus market expectations.
- Shipments to the United States slipped to $6.3 billion, down about 9% from a year earlier as new US tariffs hit sectors such as textiles, shrimp, and gems and jewellery, though exports rose from September levels.
- New Delhi has announced more than $5 billion in exporter relief and is in talks with Washington, while officials say bullion demand should moderate after the festive period as services trade remains supportive.