August’s record gold influx lifts import bill to all-time high

India’s goods exports shrank 9.32% to $34.71 billion in August, while the import bill expanded 3.3% to an all-time high of $64.36 billion, fuelled by a doubling in gold imports to a record $10.1 billion.

The trade deficit widened to a 10-month high of $29.65 billion, the second highest monthly gap in merchandise trade.

Commerce Secretary Sunil Barthwal sought to allay concerns, arguing that the trade deficit should not be a matter of concern for a developing economy with high growth. “To the extent there are no foreign exchange issues, it should not matter,” he asserted.