India October Trade Deficit Hits One-Year High of $39.88 Billion as Gold Imports Triple

India's merchandise trade deficit widened to a one-year high of $39.88 billion in October, a jump that landed far above forecast and put fresh pressure on the rupee at the start of the festive season. The number, released Friday by the Ministry of Commerce and Industry, is the trade book's sharpest deterioration in a year and the strongest single statement yet on how festival demand and energy-basket costs are straining the current account.

Key Takeaways The October merchandise trade deficit hit $39.88 billion, up from $30.21 billion in September and well above the $32.25 billion Reuters poll forecast. Gold imports more than tripled to $5.51 billion from $1.8 billion, driven by pre-Diwali pur…