India’s merchandise exports touched an all-time high of $49.47 billion in October 2026, marking a 45.06% increase from the $34.11 billion recorded in the same month last year. According to data released by the Ministry of Commerce and Industry, this performance represents the highest monthly growth rate for goods exports in five years.
While the export surge was substantial, rising import costs—driven by global energy market volatility—resulted in a merchandise trade deficit of $39.88 billion, the highest level recorded this calendar year. Merchandise imports rose to $89.35 billion from $76.69 billion in October 2025. The Indian Express reported this deficit is marginally lower than the $42.58 billion recorded in October 2025, while Reuters, cited by The Times of India, noted the gap was higher than the $30.21 billion recorded in September.
Commerce Secretary Rajesh Agrawal stated that the growth is not limited to specific sectors or geographies. Petroleum products exports rose 140% to $8.89 billion, while electronic goods shipments grew 62% to $6.64 billion. Conversely, gold imports fell 62% to $5.51 billion, and silver imports declined 28.26% to $1.91 billion compared to the previous year. Exports to the U.S. grew 39.3%, reaching $8.72 billion.
The overall trade balance was bolstered by the services sector, where exports were estimated at $40.51 billion, up from $35.17 billion a year earlier. This service sector surplus helped narrow the total overall trade deficit to $20.09 billion, down from $25.15 billion in the year-ago month. The Ministry noted that October services figures remain estimates, as the latest Reserve Bank of India data covers only up to September.
Key facts
- Merchandise exports reached a record $49.47 billion in October 2026.
- The goods trade deficit climbed to $39.88 billion, marking the highest level of the calendar year.
- Total exports, including services, were estimated at $89.99 billion for the month.
- Petroleum goods imports surged by 54% to $22.81 billion.
- Exports to the U.S. grew by 39.3% to reach $8.72 billion.
Why it matters
India imports approximately 85% of its crude oil requirements, leaving the economy vulnerable to global price fluctuations. Higher costs arising from regional conflicts have pressured the trade balance, though the recent drop in Brent crude prices to around $92 a barrel has provided some relief to import expenditure.
Background
India has actively pursued market diversification and trade agreements this year, implementing deals with the U.K. and New Zealand. Officials expect a trade agreement with the European Union to be implemented early next year.
Source: Indian Express, Times of India
Comments