India Faces Record High Trade Deficit Due to Massive Gold Import in Diwali

India faces a record-high trade deficit of $31.46 billion in October, fueled by surging gold imports during the festive season and an increased oil bill. Imports reached $65.03 billion, outpacing exports at $33.57 billion.

The spike in gold imports, up 95% annually to $7.23 billion, is attributed to Diwali festivities. Despite concerns, a commerce ministry official notes stabilizing green shoots in the economy.

The trade gap's impact on the rupee and the need to boost manufacturing for improved exports are highlighted, as India navigates economic challenges and engages in FTA negotiations with the UK.

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