India’s trade deficit shoots up to $31.5bn in Oct due to spike in oil prices

New Delhi: India's merchandise trade deficit in October stood at $31.46 billion as the country’s imports shot up to $65.03 billion during the month which offset the increase in exports, Commerce Secretary Sunil Barthwal said on Wednesday.

The sharp spike in global crude oil prices has led to an increase in the country’s import bill. Similarly, gold imports were up 5.5 per cent to $29.48 billion compared to October 2022.

The trade deficit stood at $19.37 billion in September.

The country’s merchandise exports increased by 6.2 per cent to $33.57 billion in October, up from $31.60 billion in October 2022, while the merchandise imports stood at $65.03 billion, up from $57.91 billion year-on-year.

The increase in exports during the month came as a welcome relief as it broke the declining trend in the recent months.

Merchandise exports have fallen 7 per cent during April-October this year to $244.89 billion compared to the same period of the previous year.

The April-October merchandise imports worked out to $391.96 billion, down 8.95 per cent from the same period last year.