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Trade Deficit
A trade deficit is the gap between the value of goods imported and goods exported. India runs a large merchandise trade deficit because it imports oil, gold and electronics, though it exports more services than it imports.
Why It Matters
A trade deficit is not automatically bad, but it has to be financed with foreign money.
In India
India’s merchandise trade deficit hit a record of about $41.7 billion in October 2025, driven by heavy gold imports before the wedding season.
See it in the news
The US Supreme Court struck down Trump’s tariffs. India’s deal just got strangerFeb 23, 202618%: the trade deal that swapped tariffs for Russian oilFeb 5, 2026₹90 to a dollar: the rupee crosses a round numberDec 4, 2025Fifty percent: what America’s tariff actually costs Tiruppur and SuratSep 12, 2025
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