India’s merchandise exports jumped by 17% in October, marking the fastest growth rate in 28 months.

India’s merchandise exports recorded their fastest growth in 28 months, rising by 17.3% year-on-year (YoY) in October to reach $39.2 billion. This surge was largely attributed to inventory buildup in Western markets ahead of the Christmas season.

On the other hand, imports reached a record high of $66.34 billion, an increase of 3.9%, resulting in the trade deficit widening to $27.1 billion from $20.8 billion in September.

Encouragingly, non-petroleum and non-gems and jewellery exports, which offer a clearer view of the health of domestic manufacturing and core export performance, rose by 27.7% to $31.36 billion during the same period.