New Delhi12 minutes ago
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The country’s trade deficit may increase by about Rs 13 thousand crore in September. According to a new report by Union Bank of India, India’s trade deficit is estimated to reach $28.0 billion (2.48 lakh crore) in September 2025.
This figure is $1.5 billion more than August’s $26.5 billion (2.35 lakh crore). The biggest reason for this huge surge is the increase in gold imports in the country. Despite the increase in prices in September, gold imports almost doubled.
Demand for gold increased, import expected to double
This year the price of gold has increased by Rs 45,363 but people did not reduce purchases. Gold imports in September are expected to be almost double that of August.
The main reason behind this demand is the festive season and wedding season, with the onset of which the purchase of gold increases in the Indian markets.
India’s sluggish exports are also a reason for the loss
Apart from gold imports, India’s exports also remain sluggish, largely due to lack of global demand and delay in the trade deal with the US.
The US buys about 20 percent of India’s total merchandise exports. Indian exports have been directly affected due to the slowing down of bilateral trade with America.
However, Commerce Minister Piyush Goyal and Foreign Minister S. Jaishankar has confirmed that negotiations are underway for a phase one trade agreement with the US, which is expected to continue till November 2025.
If this agreement is reached, reduced tariffs could lead to a boost in exports to the US.
What is trade deficit?
When during a certain time period the value of the country’s imports, i.e. the value of goods imported from abroad, exceeds the value of the country’s exports, i.e. the value of goods sent outside the country.
In such a situation, more of India’s money goes abroad, this situation is called trade deficit. This is also called negative balance of trade. In other words, when a country buys more than it sells, it is called a trade deficit.
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