New Delhi, Nov. 24 -- India's merchandise trade deficit widened to an all-time high of $41.7 billion in October 2025, driven by a sharp increase in gold and silver imports and a renewed contraction in exports, according to the Reserve Bank of India's (RBI) State of the Economy report in the November 2025 Bulletin.

The deficit, the highest for any month on record, reflects a combination of festive-season import spikes, weak global demand, and broad-based increases in non-oil non-gold imports, the report noted.

The RBI bulletin highlighted that India's merchandise exports returned to contraction in October after three consecutive months of growth. Weakness in global manufacturing and services activity, particularly in export orders, weigh...