New Delhi, Nov 17 (PTI) India's exports contracted 11.8 per cent to USD 34.38 billion in October on account of the impact of high tariffs by the US, while the trade deficit widened to a record high of USD 41.68 billion, mainly due to a jump in gold imports.

According to government data released on Monday, the country's imports jumped 16.63 per cent to an all-time high of USD 76.06 billion due to high inbound shipments of the yellow metal, silver, cotton raw/waste, fertiliser, and sulphur.

In September, the trade gap widened to USD 31.15 billion, the highest in over a year.

While gold imports rose about 200 per cent to USD 14.72 billion, silver rose 528.71 per cent to USD 2.71 billion during October.

Crude oil imports dipped to USD 14.8 billion in October from USD 18.9 billion in the same month last year.

During April-October this fiscal year, exports increased marginally by 0.63 per cent to USD 254.25 billion, and imports rose 6.37 per cent to USD 451.08 billion.

Merchandise trade deficit during April-October 2025 was USD 196.82 billion as compared to USD 171.40 billion in the same period during April-October 2024.

Briefing the media on the data, Commerce Secretary Rajesh Agrawal said, despite global uncertainties, "we are holding our ground".

He also said that the fall in exports in the last month can also be attributed to the base effect (USD 38.98 billion in October 2024).

Key segments such as engineering goods, petroleum products, gems and jewellery, apparel and textiles, organic and inorganic chemicals, pharmaceuticals, and plastic goods witnessed noticeable contraction, weighing down the overall export performance.

Handicrafts, carpet, leather, iron ore, tea, rice, tobacco, spices and oil meals, too, recorded negative growth in exports in October.

Petroleum product shipments dipped 10.5 per cent to about USD 4 billion, while engineering goods shipments fell 16.71 per cent to USD 9.37 billion.

The US has imposed hefty 50 per cent tariffs on Indian goods, which are impacting the country's exports.

Federation of Indian Export Organisations (FIEO) President S C Ralhan said the export contraction mirrors the broader global economic slowdown, marked by geopolitical uncertainties, subdued demand in multiple major markets, and persistent volatility in commodity prices.

Expressing concern over the widening trade gap, he urged decisive and timely policy intervention.

He reiterated the need for enhanced export support measures, faster release of benefits under various schemes, improved and affordable credit access, and reduction of compliance burdens so that exporters can remain competitive in a challenging global environment.

As per the provisional figures, the estimated value of services export for October is USD 38.52 billion as compared to USD 34.41 billion in the same month last year.

During the first nine months of this fiscal year, exports stood at USD 237.55 billion as compared to USD 216.45 billion in April-October 2024.

Aditi Nayar, Chief Economist, Icra Ltd, said merchandise exports declined to an 11-month low of USD 34.4 billion in October amid a double-digit contraction in both oil and non-oil exports. PTI RR CS BAL BAL

India's exports dropped 11.8% and trade deficit hit a record USD 41.68 billion, driven by gold imports and US tariffs. India's merchandise exports fell 11.8% to USD 34.38 billion in October while the trade deficit hit a record USD 41.68 billion, driven by a surge in gold and silver imports and contractions across major export sectors. The decline is linked to external pressures including the imposition of 50 per cent tariffs by the US and subdued global demand, prompting calls for enhanced export support, faster benefits disbursement, improved credit access, and reduced compliance to bolster competitiveness.