India's October trade deficit hits one-year high of $39.88 billion as gold imports jump
SPY•India's merchandise trade deficit widened to a one-year high of $39.88 billion in October, above the $32.25 billion forecast, as gold imports more than tripled from September and energy costs rose. Goods exports increased to $49.47 billion, while imports climbed to $89.35 billion.
1. Deficit widens in October
India's merchandise trade deficit widened to $39.88 billion in October from $30.21 billion in September, exceeding the $32.25 billion forecast. Gold imports more than tripled to $5.51 billion from $1.8 billion, as jewellers and consumers stepped up purchases ahead of Diwali.
2. Energy costs lift imports
Imports of petroleum products, mainly crude oil, rose 54.31% year-on-year to $22.82 billion. The average Indian crude basket had neared $120 a barrel, government estimates showed. A senior official said gold imports were likely driven by a correction in global prices and pre-festive demand.
3. Exports reach monthly high
Goods exports rose to $49.47 billion from $44.4 billion in September, while imports climbed to $89.35 billion from $74.61 billion. Trade Secretary Rajesh Agrawal said India recorded its highest-ever monthly goods exports in October, citing increases in petroleum, electronics, engineering products and gems and jewellery.
