The story so far: India’s trade deficit in October surged by 141% in October 2025 to $21.8 billion. While this is a seemingly alarming jump, underlying data show that things aren’t all that bad, with India’s exports displaying some resilience in the face of significant headwinds, and its imports being disproportionately affected by the import of a few items.

What happened to India’s trade balance?

Trade balance is the difference between imports and exports. If the imports exceed exports, then it is called a trade deficit. If exports exceed imports, then it is a trade surplus. In October 2025, India’s trade deficit expanded to $21.8 billion from $9.05 billion in the same period last year. Various factors can lead to the widening of a trade deficit. Exports can shrink, imports can swell

See Full Page