New Delhi: As India’s exports continue to reel under extereme pressure due to he tariffs imposed by US President Donald Trump and geopolitical factors, the Department of Economic Affairs of Ministry of Finance released its monthly economic review which stated that the persistent strength in services exports provides an important counterbalance to the volatility in merchandise trade.
The external environment remains characterised by elevated trade policy uncertainty, though global pressures have moderated relative to earlier peaks. India’s merchandise exports softened in October due to a surge in gold and silver imports, while services exports achieved their highest-ever monthly level, providing a substantial buffer to the merchandise trade deficit.
Capital flows were mixed, with strong FDI inflows offsetting subdued portfolio activity; India’s foreign exchange reserves of USD 687 billion continued to provide a substantial buffer against external shocks.
India’s Trade Performance
During the period April-October FY26 India’s total exports (goods and services) recorded a growth rate of 4.8 per cent (YoY), reaching USD 491.8 billion.
Merchandise exports increased by 0.6 per cent (YoY)
Non-petroleum, non-gems and jewellery exports registered a growth of 4.6 per cent (YoY).
Services exports increased by 9.7 per cent (YoY), reaching USD 237.6 billion. The services exports generated a net services surplus of USD 118.7 billion. As a result, the total trade deficit stands at USD 78.2 billion.
The trade statistics for the month of October 2025
Merchandise exports registered a decline of 11.8 per cent (YoY), merchandise imports increased by 16.6 per cent (YoY).
Gold imports surged by 199.2 per cent
Silver imports jumped by 528.7 per cent (YoY). The rise in imports was attributed to rally in gold and sulver prices. Consequently, the merchandise trade deficit increased to USD 41.7 billion from USD 26.2 billion in October 2024.
Services exports
“Simultaneously, the services trade continued to provide thrust to India’s trade performance. Services exports have increased by 11.9 per cent (YoY), amounting to USD 38.5 billion. This represents the highest level of service exports recorded in a single month. Services imports have increased by 8.2 per cent; as a result, the net of services trade increased by 15.7 per cent (YoY), amounting to USD 19.9 billion,” the finnace ministry report mentioned.
Effectively, the services trade surplus covered 48 per cent of the merchandise trade deficit and therefore, the total trade deficit amounts to USD 21.8 billion in October 2025.
To improve trade performance amidst global uncertainty, India is actively pursuing a diversified trade strategy. This includes the recently concluded India–UK (CETA) and engagements in FTA negotiations with the EU, US, New Zealand, Chile, and Peru. Further, the Export Promotion Mission announced in the Union Budget 2025–26 has been approved by the Cabinet with an outlay of Rs 25,060 crore.
This Export Promotion Mission is aimed at “strengthening India’s export competitiveness, particularly for MSMEs, first-time exporters, and labourintensive sectors and also provide a comprehensive, flexible, and digitally driven framework for export promotion,” the release stated.
(With inputs from dea.gov.in)