Merchandise exports hit a record $49.47 billion

India’s overall exports, comprising merchandise and services, rose 29.9 per cent year-on-year to $89.99 billion in October 2026, compared with $69.27 billion a year earlier, driven by a sharp increase in goods shipments, according to data released by the ministry of commerce and industry on Friday.Overall imports also increased, rising to $110.07 billion from $94.42 billion in October 2025. However, the overall trade deficit narrowed to $20.09 billion from $25.15 billion in the year-ago month, as export growth outpaced the rise in imports.Merchandise exports surged 45.06% to $49.47 billion in October from $34.11 billion a year earlier. Trade Secretary Rajesh Agrawal said India recorded its highest-ever monthly goods exports during the month, as quoted by Reuters.However, the sharp rise in goods shipments was accompanied by a widening merchandise trade gap. The goods trade deficit climbed to $39.88 billion in October, its highest level in a year, according to a Reuters calculation based on government data. This was higher than the $30.21 billion deficit recorded in September and the $32.25 billion forecast by economists in a Reuters poll.Merchandise imports rose to $89.35 billion in October from $76.69 billion in the corresponding month last year. Compared with September, exports increased from $44.40 billion, while imports rose from $74.61 billion.In the services sector, exports were estimated at $40.51 billion in October, up from $35.17 billion a year earlier. Services imports also increased to an estimated $20.72 billion from $17.73 billion.The services surplus helped offset the merchandise trade deficit, contributing to the narrowing of the overall trade gap. The ministry clarified that October services figures are estimates, as the latest actual data released by the Reserve Bank of India pertains to September.India, the world’s third-largest oil consumer, imports nearly 85 per cent of its crude oil requirements. Higher import costs amid disruptions in global energy markets following the Middle East conflict have added pressure to its trade balance. A fall in Brent crude prices to around $92 a barrel has offered some relief.India’s export performance has also been supported by efforts to diversify markets and expand trade ties. New Delhi has implemented trade agreements with the UK and New Zealand this year, while a trade deal with the European Union is expected to be implemented early next year.