India experienced a sharp decline in gold imports in September. It fell to $4.39 billion from a record high of $10.06 billion the previous month. This drop played a crucial role in narrowing the country’s trade deficit, which stood at $20.78 billion—lower than the $24.63 billion forecast by economists in a Bloomberg survey.
The reduction in gold imports reflects a broader trend in India’s trade dynamics.
Overall, imports grew by 1.6% year-on-year to reach $55.36 billion in September, while exports rose slightly by 0.5% to $34.58 billion during the same period.
The total import bill was notably lower than August’s $64.36 billion.
It must be noted that the escalating conflict in the Middle East poses a significant threat to global trade, potentially disrupting supply chains and increasing freight costs.
Recently, the World Trade Organization revised its merchandise trade growth forecast for 2025 to 3%, down from an earlier estimate of 3.3%.
–With agencies inputs