In July 2022, however, imports of the precious metal fell 43.6% to $2.4 billion, according to the latest data released by the commerce ministry.
In July 2022, however, imports of the precious metal fell 43.6% to $2.4 billion, according to the latest data released by the commerce ministry.
India’s gold imports, which weigh on the country’s current account deficit (CAD), rose 6.4 per cent to $12.9 billion during April-July in the current fiscal, according to government data. Imports in the same period a year ago stood at $12 billion.
In July 2022, however, imports of the precious metal fell 43.6% to $2.4 billion, according to the latest data released by the commerce ministry.
An increase in gold and oil imports during the first four months of this fiscal contributed to a record trade deficit of $30 billion as against $10.63 billion in April-July 2021.
India is the second largest consumer of gold in the world after China. Imports mainly meet the demand of the jewelery industry. Gems and jewelery exports grew nearly 7% to $13.5 billion during the first four months of the current fiscal.
A widening trade gap widened the country’s current account deficit to 1.2% of GDP during 2021-22 as against a surplus of 0.9% in FY2011, according to Reserve Bank data released in June.
For the January-March 2022 quarter, the CAD narrowed to $13.4 billion, or 1.5% of GDP, on a sequential basis, from $22.2 billion or 2.6% of GDP in the October-December 2021 quarter.
A current account deficit occurs when the value of imported goods and services and other payments exceed the value of exports of goods and services and other receipts by a country in a particular period.