Gold Imports Plunge as India's Exports Surpass Forecasts

India's gold imports plummeted by 57.7% in August, dropping to $2.3 billion from $5.4 billion a year ago.

The sharp decline comes as gold prices remain elevated, raising questions about whether higher prices are beginning to affect India's appetite for physical gold.

The government data shows that overall imports rose 14.1% to $70.67 billion in August, while exports surged 26.12% to $43.81 billion, narrowing the country's trade deficit to $26.9 billion from $31.98 billion in July.

Economists had forecast a trade deficit of $32.15 billion, but Commerce Secretary Rajesh Agrawal attributed the lower figure to strong demand for Indian goods in major overseas markets, including the US and EU, as well as emerging markets.