India's Export Downturn Amid High US Tariffs and Record Trade Deficit

India's exports fell 11.8% to $34.38 billion in October, impacted by high US tariffs, while the trade deficit hit a record $41.68 billion due to increased gold imports. Amid global economic challenges, experts call for policy measures to enhance export support and competitiveness.

India's export sector is witnessing a significant downturn, with exports contracting by 11.8% to USD 34.38 billion in October, amid high tariffs imposed by the US. This contraction has contributed to a record trade deficit of USD 41.68 billion, primarily driven by a surge in gold imports.

Government data released on Monday highlights a 16.63% increase in imports to an unprecedented USD 76.06 billion in October. This surge is due to higher inbound shipments of gold, silver, and other commodities such as cotton, fertilisers, and sulphur, which exacerbated the trade deficit.

Commerce Secretary Rajesh Agrawal acknowledged the struggles but emphasized resilience amid global uncertainties. Experts call for prompt policy interventions to support exports as industries like engineering, petroleum, and textiles experience noticeable contractions, further complicated by the global economic slowdown and geopolitical instability.

(With inputs from agencies.)