India’s September trade gap narrows as gold imports slowed

INDIA’S trade deficit narrowed to the lowest in five-months in September as the nation’s import bill declined due to moderation in inbound shipments of gold. 

The gap between imports and exports stood at US$20.78 billion in September, Trade Ministry data showed on Wednesday (Oct 16), lower than the US$24.63 billion deficit forecast by economists in a Bloomberg survey. India reported a trade deficit of US$29.6 billion in August.  

Imports grew 1.6 per cent from a year earlier to US$55.36 billion in September, while exports rose 0.5 per cent to US$34.58 billion during the month. Inbound shipments were US$64.36 billion in August, while outbound shipments stood at US$34.71 billion.

Gold imports fell to US$4.39 billion in September, from a record high of US$10.06 billion the previous month, while crude oil imports rose to US$12.5 billion from US$11.01 billion in August, the data showed.

Indian exports “are in a positive territory” on account of growth in outbound shipments of ready-made garments and electronic goods, Commerce Secretary Sunil Barthwal told reporters in New Delhi.

The escalating conflict in the Middle East poses a significant threat to the global trade, with potential disruptions to supply chains and higher freight costs. Last week, the World Trade Organization lowered its projection of merchandise trade growth to 3 per cent in 2025, from its earlier estimate of 3.3 per cent. BLOOMBERG