India's trade crossroads: Navigating global headwinds, building resilience

The challenge is not reversal but recalibration: India must redesign its external strategy even as domestic engines stay strong

India’s trade report for October this year is a reminder that even fast-growing economies face external shocks that test both resilience and vulnerability. The month delivered a record trade deficit in merchandise of $41.7 billion, driven by a 200 per cent surge in gold imports and a steep 37.5 per cent drop in exports to the United States (US) after tariffs jumped from 10 per cent to 50 per cent in six months. 

Yet the broader picture is not of an economy veering into crisis. Growth remains steady at 6-7 per cent, the inflation rate has