New Delhi, Sept. 11 -- India's merchandise trade deficit is expected to have reduced modestly in August 2025, according to a report by Union Bank of India.

The report estimated that the trade deficit fell to USD 26.1 billion in August from USD 27.4 billion in July.

It stated "Merchandise trade deficit likely narrowed marginally in Aug'25 to USD 26.1 bln vis-a-vis USD 27.4bln a month ago".

The report mentioned that modest narrowing was driven largely by a surge in gold demand ahead of the upcoming festive and wedding season.

Despite higher prices, gold imports nearly doubled last month, providing a lift to trade activity. On the other hand, commodity prices offered only mild relief.

At the same time, the report highlighted that the tr...