The central government told Parliament on Wednesday that India’s trade deficit has increased in October 2025. The main reason for this was the sharp increase in imports of goods in the country, especially the record demand for gold and silver. However, the services sector remained strong and the country’s exports also appeared to be growing at a steady pace.
The biggest reason for increase in imports
According to the data presented by the government, the biggest reason for the increase in imports in October was the increased import of gold and silver. Demand in India increased due to rising international gold prices, while silver consumption increased due to increasing production in industries like solar panel manufacturing, electronics, electric vehicles and pharma. The high demand for both of these pushed the total imports significantly higher, thereby increasing the trade deficit.
On the other hand, a slight decline was recorded in total exports in October 2025. Experts believe the reason for this is the high base of October 2024, when India recorded the largest monthly exports in history. Due to this, this year’s comparison appeared a bit weak. Despite this, a growth of 4.1% was recorded in exports between April and October 2025, which shows a stable and positive trend.
This was the reason behind export growth
The government said that India’s total exports in the first six months of the financial year 2025-26 (April September 2025) reached $ 418.6 billion. This is 5.8% more than $395.7 billion in the same period last year. This is India’s strongest half-year export performance so far. According to the government, the main reasons behind this export growth are better logistics, improvement in port capacity, facilities provided to exporters and incentives being given to high-growth sectors.
Additionally, India has also signed 5 Free Trade Agreements (FTAs) with many major countries in the last five years. These include Mauritius, UAE, Australia, European Free Trade Association and United Kingdom. These agreements have accelerated trade, investment and technical cooperation between India and its partner countries.
Overall, India’s export sector remains resilient and strong despite global uncertainties and rising raw material prices. The government expressed confidence that exports can reach even higher levels in future and India will continue to strengthen its place as a reliable partner in global trade.
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