The country's import bill is rising sharply once again. The reasons are a weak rupee, rising global prices of gold and crude oil, and continued dependence on imported electronic components. This resulted in a widening trade deficit of $41.68 billion in October. The weak rupee is the biggest reason for India's rising import burden. A depreciating currency means India has to spend more to purchase the same amount of foreign goods. Since the country imports large quantities of crude oil, gold, and electronic components, even a slight decline in the rupee increases the total import bill.

The rupee plummeted to an all-time low of below 90 against the US dollar on December 3 and emerged as the worst performing Asian currency.

Global gold prices have risen amid inter-national tensions and economic uncertainty. Domestic prices have fallen slightly to ₹1.33 lakh per 10 grams due to a decline in local demand. The rise in international prices means India is paying more dollars for the same amount of gold, increasing its overall import bill.

Around a dozen electronics companies imported parts and products worth over ₹1.21 lakh crore in 2024-25. This is a 13% increase from the previous year.

Crude oil continues to be the biggest burden on the import bill, even when oil prices remain normal. India imports more than 85% of its crude oil needs. While prices hovering around $63-64 per barrel may make the overall price seem manageable, a weak rupee increases costs exponentially.