India’s merchandise trade deficit widened to about US$32.15 billion in September 2025 — a 13-month high — due in large part to surging imports of gold and silver and a drop in exports to the U.S., where heavy tariffs are now in force.
While exports dropped (India’s goods exports to the U.S. slid from US$6.87 billion to US$5.43 billion in August → September), imports grew quicker, widening the gap. Analysts say tariff pressure and global demand softness both played major roles. reserves if the trend persists. From a policy viewpoint, the government may need to ramp up export incentives or support import substitution to rebalance.
