NEW DELHI — The merchandise trade gap fell to $26.86 billion from $31.98 billion in July, according to Commerce Ministry data. Imports dropped to $70.67 billion from $76.22 billion. Exports stood at $43.81 billion – down slightly from $44.24 billion in July, but 26.1% higher than a year earlier and the strongest August figure in at least a decade.
Gold did most of the heavy lifting. Imports of the metal almost halved to $2.3 billion from $4.16 billion in July, a 58% year-on-year decline. One category removed a large slice of pressure from the import bill.
Oil moved the other way. Crude imports rose 25.8% year-on-year to $16.69 billion. The average Indian crude basket climbed to $90.19 a barrel from $82.04 in July. By mid-September the basket had moved above $109. For a country that imports the bulk of its energy, the direction is unambiguous.
Electronics imports jumped nearly 41% to $13.66 billion. Coal, coke and briquettes rose 25% to $2.57 billion. Fertiliser imports increased about 14% to $1.89 billion. Exports held up across several categories. Engineering goods rose 24.86% year-on-year to $12.32 billion. Petroleum product exports climbed 63% to $6.81 billion.
Electronics exports increased sharply. Organic and inorganic chemicals rose more than 16% to $2.80 billion. Services exports provided additional support, lifting total exports of goods and services to an estimated $82.68 billion. The overall trade deficit, including services, narrowed to $9.41 billion from $11.62 billion a year earlier.
The five-month picture is less forgiving. Between April and August the merchandise trade deficit reached $147.09 billion, against $123.88 billion in the same period last year. Merchandise imports for the five months totalled $363 billion. Crude oil imports alone in that period rose to $95.57 billion from $78.07 billion a year earlier.
A sharp drop in gold can improve a single month. Strong engineering, petroleum product and services exports can cushion the overall account. Crude is different. When oil stays elevated, the trade balance has to absorb the cost every month. August produced a better headline.
September is already testing whether that improvement can survive a $100-plus barrel.
