Daijiworld Media Network - New Delhi

New Delhi, Sep 15: India’s gold imports dipped 57.7 per cent year-on-year to $2.3 billion in August, even as overall merchandise imports rose 14.1 per cent to $70.67 billion, according to government data released on Tuesday.

The sharp decline in gold shipments—falling from $4.16 billion in July—followed elevated global prices and appeals by Prime Minister Narendra Modi to curb gold purchases in order to help contain the import bill.

Driven by strong demand from the United States, the European Union, and emerging markets, merchandise exports surged 26.1 per cent year-on-year to $43.81 billion in August. This robust export growth, supported by key sectors like engineering goods, petroleum products, chemicals, and textiles, helped narrow India’s trade deficit to $26.9 billion from $31.98 billion in July.

The reduction in the trade deficit is expected to provide some relief to the rupee, which has experienced relatively weaker performance throughout the year. Meanwhile, the broader rise in merchandise imports was propelled by domestic economic activity, manufacturing inputs, and higher energy prices.

Prime Minister Narendra Modi hailed the country's trade performance as a "herculean feat" amid oil shocks, supply-chain disruptions, and global uncertainty. He reiterated calls for citizens to conserve foreign exchange by curbing foreign travel, gold purchases, and lavish weddings, emphasizing that rapid economic growth requires vital foreign reserves to pay for high-precision machinery, advanced technology inputs, CPUs, GPUs, and specialized software.