NEW DELHI: India’s merchandise trade deficit widened to a one-year high of $39.88 billion in October, significantly exceeding economists’ expectations, as a sharp increase in imports outpaced export growth, according to government data released on Friday.

The trade deficit, which measures the gap between merchandise exports and imports, stood at $30.21 billion in September. Economists polled by Reuters had expected the October deficit to come in at $32.25 billion.

India’s merchandise exports rose to $49.47 billion in October, compared with $44.40 billion in September. Trade Secretary Shri Rajesh Agrawal said the country had recorded its highest-ever monthly goods exports in October 2026.

However, the increase in exports was overshadowed by a sharper rise in imports. Merchandise imports climbed to $89.35 billion during the month, up from $74.61 billion in September.