200% spike in gold import drives India's trade deficit to $41.68 billion (Business Standard)
India’s trade situation worsened in October as the merchandise deficit hit a record level driven by a steep fall in exports, a surge in imports and an unusually sharp jump in gold and silver purchases linked to pent-up festival demand. Exports to major partners such as the US, UAE, UK and the Netherlands declined, non-oil and non-gems categories weakened across key sectors and this broad based contraction combined with high volume imports pushed the overall goods and services deficit to more than double last year’s level. Officials and economists noted that the weakness was partly due to a high base and tariff effects and they expect some cooling in the coming months, although the current account deficit is still likely to widen because global demand remains fragile and domestic import pressures stay elevated.
India inks first major LPG import deal with US (Financial Express)
India has finalised a one year deal to import 2.2 million tonnes of LPG from the US in 2026, reflecting its push to secure stable and diversified energy supplies while deepening trade ties with Washington despite high American tariffs on Indian goods. This agreement strengthens an already growing energy relationship in which US LNG and crude shipments to India have risen sharply over the past few years, helped by competitive long-term contracts and India’s need for reliable volumes amid global price volatility and geopolitical pressure over Russian oil purchases. At the same time, the government continues to shield domestic consumers from high international LPG prices by heavily subsidising cylinders for Ujjwala households, resulting in significant fiscal costs but maintaining affordability during a period of elevated global fuel prices.
India-UK finalising social security agreement (Financial Express)
India and the UK are working simultaneously on ratifying their new trade agreement and finalising the Double Contribution Convention, which will allow Indian professionals posted in the UK for up to three years to avoid dual social security payments and maintain continuity in their home country records. Alongside this, India is pushing to close multiple free trade negotiations with the European Union, New Zealand, Peru and Chile, with officials noting that while most talks have advanced well, the final stages are proving difficult and require alignment on sensitive issues. India is also progressing in the complex review of the ASEAN trade agreement, with another round of discussions scheduled in December and expectations of incremental but meaningful movement as the region expands to include Timor-Leste.
