Story perspectives

India's Trade Deficit Hits 13-Month High Amid Tariffs

10/17/2025

Summary

Story summary

India's trade deficit reached a 13-month high of $32.15 billion in September 2025, driven by higher gold imports and reduced exports to the United States (U.S.) after 50% tariffs.
Merchandise exports rose 6.7% year-on-year to $36.38 billion in September 2025, while shipments to the U.S. fell 11.9%.
The International Monetary Fund (IMF) upgraded India's GDP growth forecast to 6.6% as April–September exports grew 4.45% to $413.3 billion, with ongoing U.S. tariff talks.

History

Historical Context

India's trade deficit reached a record $190 billion in 2012, largely due to gold imports, which accounted for 30% of the deficit. This situation echoes the 1991 economic crisis when India pledged gold reserves to secure an IMF loan amid a balance of payments crisis. The ongoing reliance on gold imports highlights a persistent vulnerability in India's trade balance, necessitating strategic economic reforms.

1 of 2

Story summary

India's trade deficit reached a 13-month high of $32.15 billion in September 2025, driven by higher gold imports and reduced exports to the United States (U.S.) after 50% tariffs.
Merchandise exports rose 6.7% year-on-year to $36.38 billion in September 2025, while shipments to the U.S. fell 11.9%.
The International Monetary Fund (IMF) upgraded India's GDP growth forecast to 6.6% as April–September exports grew 4.45% to $413.3 billion, with ongoing U.S. tariff talks.

1 / 2