Gold and Silver Import Surge Widens India’s Trade Deficit in October 2025

India’s trade deficit widened in October 2025 following a sharp jump in gold and silver imports, the Commerce Ministry said on Monday (November 17). The rise was driven by pent-up demand, festive-season buying, and higher industrial requirements for precious metals.

Gold and Silver Imports Rise Sharply

Gold imports increased to $14.72 billion in October, significantly higher than $4.92 billion a year ago. Silver imports rose to $2.72 billion, compared with $0.43 billion in October 2024.

According to the ministry, the sharp increase followed a period of subdued imports, with a 25% decline in recent months, which created pent-up demand during the festive season. Silver demand also remained firm due to its wider industrial usage in solar panels, electronics, EVs, and pharmaceuticals.

Trade Deficit Trends and Export Performance

For the first seven months of the financial year, India’s trade deficit expanded 11.76% year-on-year, reflecting the impact of higher imports and mixed global conditions.

Despite external uncertainties, overall exports remained stable.

• Total exports (April–October): up 4.84% to $491.8 billion
• Merchandise exports: up 0.63%
• Services exports: up 9.75%
• Non-petroleum merchandise exports: up 3.92%

Shipments to major markets strengthened, with exports to the US rising 10.15%, led by electronics, engineering goods, and pharmaceuticals. Exports to China increased 24.77%, supported by demand across multiple categories.

Export Finance and MSME Support

To address financing challenges for exporters, the ministry said it is working on interest subvention support and an export credit card. These measures aim to ease liquidity pressures for MSMEs and improve access to trade finance.

Read More: India Curbs Precious Metal Jewellery Imports Until April 2026.

Conclusion

India’s trade deficit widened in October 2025 primarily due to a sharp rise in gold and silver imports following pent-up and festive-season demand. While import pressures increased, exports held steady, supported by stronger shipments to key markets and progress on trade agreements. The government plans to bolster MSME competitiveness through financing support and ongoing trade policy initiatives.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.