India October Merchandise Trade Deficit Hits One-Year High of $39.88 Billion

India's merchandise trade deficit widened to a one-year high of $39.88 billion in October, driven by a surge in imports tied to festive-season consumer demand and higher global oil prices. The increase signals mounting pressure on India's external balances heading into the final months of the fiscal year.

Festive-season buying, which typically peaks around Diwali, lifted demand for goods including gold and consumer products, while elevated oil import costs added further weight to the import bill. The combination pushed the October gap well above recent months and to its widest point in a year.