India's merchandise trade deficit in August widened to $29.65 billion as merchandise exports fell, dragged down by rising shipping costs and a decline in global demand, data released by the government showed on Tuesday.

India reported record gold imports totaling $10 billion in August. It was over a three-fold increase over the previous month.

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.

India's merchandise trade deficit in August widened to $29.65 billion as merchandise exports fell, dragged down by rising shipping costs and a decline in global demand, data released by the government showed on Tuesday.

The rise in total imports was supported by a surge in core imports and gold and silver imports, following duty cuts announced in the July budget. However, the fall in oil imports did little to balance the growing trade deficit,

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

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.