Why India’s Exports Fell & Imports Surged in October 2025? | Daily Current News | Drishti IAS

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India’s trade deficit widened sharply by 141% in October 2025, reaching $21.8 billion, and this video explains in simple terms why this happened and what it means for the Indian economy. We break down the key reasons behind this sudden jump—starting from the fall in merchandise exports by 11.8%, the impact of the 50% tariffs imposed by the U.S. on several Indian goods, and the sector-wise slowdown visible in leather, gems and jewellery, chemicals, engineering goods, cotton yarn and jute products. At the same time, imports saw a significant rise, particularly due to a massive spike in gold imports (almost 200%) and silver imports (over 500%), driven by festive demand and high global prices. The video also discusses how Indian exporters are offering discounts to survive the U.S. tariff pressure, the expected easing of tensions if the India–U.S. Bilateral Trade Agreement progresses, and the EXIM Bank forecast predicting a possible rebound in Q3 2025. This analysis is extremely useful for UPSC aspirants, economy learners, and anyone who wants a clear, exam-oriented understanding of India’s external trade situation.


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