India's Exports Fall by 11.8% Even as Trade Deficit Widens, Textile Sector Badly Hit by US Tariffs
The Wire Staff
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New Delhi: Owing to the high tariffs imposed by the US, India's exports decreased 11.8% to $34.38 billion in October. Similarly, the trade deficit too increased to a record high of $41.68 billion primarily because of a rise in gold imports.
The country's imports jumped 16.63% to an all-time high of U$76.06 billion owing to high inbound shipments of the yellow metal, silver, cotton raw/waste, fertiliser, and sulphur revealed government data released on Monday (November 17), reported Press Trust of India.
Earlier in September, the trade gap had increased to $31.15 billion which was also the highest in over a year. Crude oil imports too decreased to $14.8 billion in October from USD 18.9 billion when compared to the same month last year.
On the other hand, during April-October this fiscal year, imports increased by 6.37 per cent to $451.08 billion while exports registered a marginal increasse by 0.63 per cent to $254.25 billion.
During April-October 2025, merchandise trade deficit stood at $196.82 billion while this figure was $71.40 billion in the same period last year.
Commerce Secretary Rajesh Agrawal told the media, despite global uncertainties, "we are holding our ground", reported PTI.
Meanwhile, the 50% tariffs imposed on India by the US have started hurting textile and apparel exports.
Almost all categories including cotton yarn, fabric, made ups, man-made fibres, jute products, carpets and handicrafts witnessed double-digit decline year-on-year (y-o-y) in October, reported Economic Times.
As a result of the tariffs, textile exports decreased by 12.92% y-o-y last month while apparel exports fell by 12.88%, said the Confederation of Indian Textile Industries (CITI). Cumulative exports of textile and apparel also decreased by 12.91% when compared to October 2024.
During April-October, Indian textile exports decreased 3.54% over the same period of FY25. Apparel exports increased 1.13% during the same time.
Garment and textile exporters said that US buyers are requesting for steep discounts in wake of tariffs, along with cancellation or postponement of orders and reduction in order volumes, said the ET report.
This article went live on November eighteenth, two thousand twenty five, at twenty minutes past four in the afternoon.
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