India’s merchandise trade deficit widened to $29.7 billion in August from $23.6 billion in the previous month, data released by the ministry of commerce on September 17 shows. While exports rose to $34.7 billion in August from $33.89 billion, imports increased to $62.6 billion from $57.5 billion in July.

A reduction in interest rates, widely expected later this month, could bring the world's biggest economy a further boost.

The U.S. trade deficit widened sharply in July as businesses front-loaded imports in anticipation of higher tariffs on goods, suggesting that trade could remain a drag on economic growth in the third quarter.