Gold imports up 73 per cent in April-February
According to official data, India’s gold imports, which have a bearing on the country’s current account deficit (CAD), rose nearly 73 per cent to $45.1 billion during April-February in the current fiscal. Imports stood at USD 26.11 billion in April-February 2021. However, in February 2022, imports of the precious metal declined by 11.45 per cent to USD 4.7 billion, according to commerce ministry data.
The increase in gold imports during the 11-month period contributed to widening the trade deficit to USD 176 billion as against USD 89 billion in April-February 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 by 57.5 per cent to USD 35.25 billion during the first nine months of the current fiscal.
According to the Reserve Bank, India’s current account slipped into a deficit of USD 9.6 billion, or 1.3 per cent of GDP, in the September quarter.
The current account, which records the value of international transfers of capital as well as exports and imports of goods and services, was in surplus in both the quarter-ago and year-ago periods.
Commenting on the rising gold imports, Gem and Jewelery Export Promotion Council (GJEPC) Chairman Colin Shah said that the monthly average gold import during April-February 2022 is still relatively low at 76.57 tonnes during April-February 2022.
He said gold imports in volume terms stood at 842.28 tonnes in April-February 2022, which is lower by 690 to 890 tonnes than the normal imports during the same period.