India’s trade deficit widened to nearly $30 billion in August as gold-led merchandise imports surged to over $64 billion while merchandise exports declined to around $35 billion, data released by Commerce & Industry Ministry showed. Ballooning trade deficit has an impact on the rupee which closed at 83.75 against a dollar on Tuesday.

India's merchandise trade deficit in August widened to a ten-month high of $29.65 billion after gold imports surged while exports fell, dragged down by climbing shipping costs and sluggish global demand.

India's exports registered a steepest decline in 13-month falling 9.3 per cent in August to $34.71 billion due to global economic uncertainties, while the trade deficit soared to a 10-month of $29.65 billion.

Merchandise exports rose to $34.71 billion in value terms in August, but merchandise imports increased to $64.36 billion.

India’s trade deficit widened in August with a fall in exports due to a global slowdown, while imports climbed as domestic demand remained strong ahead of the festive season.

August exports fell 9.3% year-on-year to $34.7 billion, while imports rose 3.3% year-on-year to $64.4 billion.

While goods exports in August this year totalled $34.71 billion compared to $38.28 billion in August 2023, goods imports stood at $64.36 billion compared to $62.30 billion in August last year.

India's trade data for August has been revised, showing that imports have reached a record high. This has led to a widening of the trade deficit to $29.65 billion. Exports in August declined from 2023.