New Delhi, Sept. 15 -- India's gold imports plunged 57.7 per cent year-on-year to $2.3 billion in August, even as the country's overall imports rose 14.1 per cent to $70.67 billion, government data showed on Tuesday.

The sharp drop in gold purchases came as merchandise gold exports jumped 26.1 per cent to $43.81 billion, helping narrow India's trade deficit.

India's trade deficit stood at $26.9 billion in August, down from $31.98 billion in July, according to data released by the Ministry of Commerce and Industry on Tuesday. Economists had forecast a deficit of $32.15 billion, based on the median estimate in a Bloomberg survey.

India's merchandise exports rose 26.1 per cent from a year earlier to $43.81 billion in August, significantly...