New Delhi, September 15, 2026 (Yes Punjab News)
India’s gold imports fell sharply by 57.7 per cent year-on-year to $2.3 billion in August, even as overall merchandise imports increased 14.1 per cent to $70.67 billion, according to government data released on Tuesday.
Gold imports also declined significantly from $4.16 billion in July to $2.3 billion in August, with elevated international gold prices and repeated appeals to curb gold purchases contributing to the fall.
At the same time, merchandise exports recorded strong growth, rising 26.1 per cent year-on-year to $43.81 billion in August. The improvement in exports helped narrow India’s merchandise trade deficit to $26.9 billion, compared with $31.98 billion in July.
The reduction in the trade deficit could provide some relief to the rupee, which has remained under pressure this year.
Commerce Secretary Rajesh Agrawal said strong demand from the United States, the European Union and emerging markets supported the growth in exports. The increase was broad-based, with engineering goods, petroleum products, chemicals and textiles among the sectors contributing to the expansion.
The rise in merchandise imports was driven by domestic economic activity and demand for manufacturing inputs, while higher energy prices also added to the import bill.
Prime Minister Narendra Modi described the country’s trade performance as a “herculean feat” despite oil shocks, supply-chain disruptions and global uncertainty.
Modi has also appealed to citizens to curb foreign travel, gold purchases and lavish weddings to conserve foreign exchange, particularly as India’s rapid economic growth continues to increase its dependence on imported energy and technology inputs.
As the economy expands, the demand for energy and advanced technology inputs is also rising. India therefore requires foreign exchange to pay for precision machinery, materials, CPUs, GPUs and advanced software.
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