India’s August Trade Deficit Narrows as Gold Imports Plunge

India’s goods trade deficit unexpectedly narrowed to $26.86 billion in August, down from $31.98 billion in July, government data showed. The decline came mainly from a sharp fall in imports, particularly gold, even as merchandise exports slipped slightly from the previous month.

Gold imports nearly halved to $2.3 billion from $4.16 billion in July, helping bring total imports down to $70.67 billion. However, crude oil imports increased 25.8% year-on-year to $16.69 billion, while India’s average crude basket price rose to $90.19 a barrel in August amid disruptions linked to the U.S.-Iran conflict and wider Middle East tensions.

Merchandise exports fell marginally to $43.81 billion from $44.24 billion in July, but remained the highest August figure in at least a decade. Total goods and services exports rose nearly 25% year-on-year to $82.68 billion, supported by engineering, electronics, automobiles and services. The U.S. remained India’s top export destination during April-August.

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