Trade deficit at 13-mth high; US exports fall 12%

Gold imports up 107%; outbound shipments maintain momentum

- SHREYA NANDI

India's trade deficit widened to a 13-month high in September, driven by a sharp rise in bullion imports, even as merchandise exports grew 6.7 per cent year-on-year (Yo-Y) to $36.38 billion, data released by the commerce department on Wednesday showed.

This growth came despite shipments to the US contracting about 12 per cent, following the 50 per cent tariff that came into full force in September.

Imports grew at a faster pace of 16.7 per cent at $68.53, resulting in the trade deficit widening to $32.15 billion during the month. The trade deficit stood at $24.65 billion in September 2024. However, services exports contracted 5.5 per cent to $30.82 billion, while imports shrank 7.6 per cent to $15.3 billion, resulting in a surplus of $15.5 billion. Services trade data for September is an "estimate", which will be revised based on the Reserve Bank of India's subsequent release, the commerce department clarified.