India’s Trade Deficit Hits 13-Month High on Gold Imports and U.S. Tariffs

New Delhi: India’s merchandise trade deficit surged to a 13-month high of $32.15 billion in September 2025, driven by a sharp rise in gold and silver imports and a decline in exports to the United States following the imposition of steep tariffs. This widening gap reflects both seasonal demand and mounting external pressures on the country’s trade balance.

According to data from the Commerce Ministry, exports to the U.S. fell to $5.43 billion from $6.87 billion in August, affected by tariffs of up to 50% on goods such as textiles, shrimp, and gems and jewelry. Meanwhile, imports from the U.S. increased to $3.98 billion from $3.6 billion, further intensifying the trade imbalance. Commerce Secretary Rajesh Agrawal noted that while exports maintained momentum globally, imports grew at a fa