Import surge drives India’s trade deficit to all-time high

India’s trade deficit has widened to a record level, driven by rising imports amid higher energy costs linked to the war in Iran.

The country’s trade balance deficit reached an all-time high of $28.4 billion in April 2026, compared with $27.1 billion a year earlier, Caliber.Az reports, citing Russian media.

According to the Ministry of Commerce and Industry, analysts had expected a deficit of around $27 billion, but imports rose more strongly than forecast.

Imports increased by 10% to $71.9 billion, primarily due to a surge in global energy prices following the outbreak of the war in Iran. Exports also grew by 13.8% to $43.56 billion, but this was insufficient to offset the widening gap.

Authorities have expressed concern that the expanding deficit is putting pressure on the rupee and depleting foreign exchange reserves. In response, the government has increased tariffs on gold and silver imports by two and a half times, raising them to 15% from the previous 6%. India remains one of the world’s largest importers of precious metals.

By Vafa Guliyeva