India's September merchandise trade deficit widens to $30.21 billion

Business Recorder reported that India's goods trade gap reached $30.21 billion in September, compared with $26.86 billion in August, because imports rose more quickly than shipments abroad. Government figures released on Thursday showed the shortfall was slightly below the $30.4 billion that economists had forecast in a Reuters poll. Exports climbed to $44.40 billion from $43.81 billion, while imports reached $74.61 billion against $70.67 billion the month before.

The deterioration coincided with an escalating US-Iran conflict that has disrupted oil supplies, adding to inflation concerns in India, which is the world's third-largest oil importer. Brent crude has remained above $100 a barrel, while incidents near the Strait of Hormuz have picked up sharply during the last 10 days. India's central bank had raised interest rates earlier this month and has since announced several steps to support the rupee.

Trade secretary Rajesh Agrawal credited the broad-based export growth to strength across several sectors, naming fuel products, farm-linked goods, electronics and engineering items. Vehicle exports climbed to 684,481 units in September, a 22.5% annual rise, according to the Society of Indian Automobile Manufacturers, with two-wheeler shipments up 26.8%. Passenger vehicle exports, however, slipped 2.2%. Gold imports shrank to $1.8 billion in September, down from $2.3 billion the previous month.