Exports fell 9.3 per cent to $34.71 billion in August, its steepest decline in 13 months, because of global economic uncertainties.

Imports increased 3.3 per cent to $64.36 billion in August, driven by a significant jump in gold and silver shipments. The trade deficit soared to a 10-month high of $29.65 billion, according to government data.

Gold imports more than doubled to $10.06 billion in August from $4.93 billion a year earlier, while silver imports swelled to $727 million from $159 million.

Ashwani Kumar, president of the Federation of Indian Export Organisations, attributed the decline in merchandise exports to global economic uncertainties, falling commodity prices and logistical challenges.

International trade disruptions, along with lower crude and metal prices, have impacted export values. Some exporters have shifted to the domestic market due to declining profitability in exports and rising international freight costs.

Commerce secretary Sunil Barthwal said exports are facing significant challenges because of the global economic slowdown, particularly in China, and continued recessions in the EU and the US.

Falling oil prices and increased transportation costs due to the Red Sea crisis are also hurting shipments.