New Delhi - India’s trade deficit widened to a 10-month high of $29.7 billion in August as imports hit a record high of $64.4 billion on doubling of gold inflows, and exports contracted for the second month in a row to $34.7 billion due to softening of oil prices and muted global demand.

Merchandise exports contracted 9.3 per cent to $34.7 billion in August. Other factors that affected merchandise exports included a huge slowdown in China, falling petroleum prices, recession in advanced economies and transportation- and logistics-related challenges.