India’s trade deficit narrowed from a record high as easing global commodity prices lowered import costs, aiding the government’s efforts to reduce inflows through curbs on gold purchases.

The gap between exports and imports stood at $28.6 billion last month, from a record high of $30 billion in July, Trade Secretary BVR Subrahmanyam said at a press conference Saturday. 

Imports jumped 37% in August from a year ago to $61.68 billion, while exports were $33 billion, down 1.15%.

Inbound shipments of petroleum products during the month are up 86% to $17.6 billion, and gold imports declined 47% at $3.5 billion. Coal imports stood at $4.5 billion, while petroleum exports rose 5% for last month standing at $4.9 billion.

Global commodity prices have fallen from their peak seen earlier this year as hawkish central banks stir up market fears over rising rates, with slowdown talks threatening to stifle raw materials demand. Meanwhile, the federal government’s decision to raise import duty on gold in June and impose a levy on fuel exports also impacted the trade gap. 

Though below record, a wider trade deficit is also putting pressure on current account gap -- the broadest measure of the country’s external finances. Subrahmanyam said the current account deficit will be about 3% in fiscal 2023, lower than Bloomberg Survey of 3.2%.