New Delhi, Nov. 13 -- India's merchandise trade deficit widened to a one-year high in October as festive-season demand, higher crude oil prices and a sharp rebound in gold purchases pushed imports to a record level.

The trade deficit, which represents the difference between merchandise exports and imports, increased to $39.88 billion in October from $30.21 billion in September, according to government data released on Friday. The latest figure was significantly higher than the market estimate of $33.30 billion.

Exports and imports both recorded strong growth during the month, although the increase in imports outpaced export growth in absolute terms.

India's merchandise exports surged 45% year-on-year to a record $49.47 billion in Octob...