Gold curbs aid trade deficit narrow in June from 7-mth high

India's trade deficit narrowed in June to USD 12.24 billion from a 7-month high, helped by a slowdown in gold imports, which should ease pressure on the current account balance and the beleaguered rupee.

Indians' hunger for gold has made it the second biggest item, after crude oil, in the country's import basket. To tamp down gold demand, Indian authorities last month took a slew of measures including a 2 percentage point hike in import duty.

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Those measures appear to have worked as the growth in gold and silver imports slowed to 22.8 percent year-on-year at USD 2.45 billion last month.

Gold and silver imports had jumped an annual 109 percent in April and May combined as retail buyers tried to take advantage of sliding global prices.

Overall, merchandise imports rose about 0.73 percent to USD 36.03 billion, the trade ministry said on Friday. Exports fell 4.57 percent from a year earlier to USD 23.79 billion, their second straight monthly fall.