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India’s Merchandise Trade Deficit Falls to a Five-Month Low in August 2026

By Rakesh Kushwaha, Lead Tech & Exam Analyst

Economy & Banking

India’s merchandise trade deficit narrowed significantly in August 2026, reaching its lowest level in five months. The improvement was mainly driven by a sharp decline in gold imports, which helped offset the impact of elevated import expenditure on other goods.

India’s Merchandise Trade Deficit Falls to a Five-Month Low in August 2026

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Question 1

What was India's merchandise trade deficit in August 2026, the lowest in five months?

Question 2

Which factor was a major reason for the sharp narrowing of India's merchandise trade deficit in August 2026?

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