India’s exports fall nearly 12% in October, trade deficit widens to USD 41.68 billion

India’s exports contracted 11.8 per cent to USD 34.38 billion in October, showed government data released on Monday. Imports jumped 16.63 per cent to USD 76.06 billion. The country’s trade deficit stood at USD 41.68 billion during the reporting month. Imports surged due to increased shipments of gold and silver.

Gold imports jumped to USD 14.72 billion in the last month against USD 4.92 billion recorded in the same month last year.

The country’s exports to the United States declined to USD 6.3 billion in October as against USD 6.9 billion registered in the year-ago month, Commerce Secretary Rajesh Agrawal told reporters here.

During April-October this fiscal, exports increased marginally by 0.63 per cent to USD 254.25 billion. At the same time, imports rose 6.37 per cent to USD 451.08 billion, the commerce ministry data showed.

RBI allows 15-month time for exporters

Meanwhile, the Reserve Bank has permitted exporters to bring proceeds of their shipments in 15 months, as against the prevailing timeframe of 9 months, in view of the stress being faced by them.

Exporters are facing issues due to a steep tariff imposed by the US on Indian shipments since August. The US imposed a steep 50 per cent tariff on goods from India, which took effect on August 27.

Currently, the value of goods or software exports made by exporters is required to be realised fully and repatriated to the country within a period of nine months from the date of export.

The changes have been made following amendments to the Foreign Exchange Management (Export of Goods & Services) Regulations.

These regulations may be called the Foreign Exchange Management (Export of Goods and Services) (Second Amendment) Regulations, 2025, a gazette notification dated November 13 signed by RBI regional director Rohit P Das said.

The Reserve Bank of India (RBI) had extended this timeframe for exporters to 15 months during 2020 during the COVID-19 period.