FX.co ★ India Trade Gap Higher Than Expected, Imports Hit Record

India's merchandise trade deficit widened to $39.88 billion in October 2026, sharply above economists' expectations of $32.25 billion and up from $30.21 billion in September. Imports surged to a record $89.35 billion, compared with $74.61 billion in September and $76.06 billion in October 2025, more than offsetting the rise in exports and resulting in a larger trade gap. Merchandise exports increased to $49.47 billion, up from $44.4 billion in the previous month and $34.38 billion a year earlier. At the same time, India posted a services trade surplus of $19.79 billion, which partially offset the merchandise deficit.