Image for representational purpose only. , Photo Credit: Mustafa KK
India’s gold imports fell nearly 30% to $31.8 billion during April-February 2023 impacting the current account deficit due to higher customs duty and global economic uncertainties, according to commerce ministry data.
In the same period of 2021-22, the import of the yellow metal stood at $ 45.2 billion.
Imports are in negative territory since August 2022.
However, silver imports increased by 66% to $5.3 billion during April-February 2023.
However, the sharp drop in gold imports has not helped reduce the country’s trade deficit – the difference between imports and exports. The merchandise trade deficit for April-February 2022-23 was estimated at $247.52 billion, as against $172.53 billion in the year-ago period.
According to industry experts, high import duty on gold and global economic uncertainty are the reasons for the decline in imports of the precious metal.
The former chairman and managing director of GJEPC said, “India imported around 600 tonnes of gold during April-January 2023, and it is down due to high import duty. should be considered as part of the fee for Kama Jewelry said Colin Shah.
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Over the years, it has been observed that any spurt in gold prices reduces the demand for gold along with the sale of old gold, and another factor is high duty which encourages informal routes of gold import. Yes, he said.
India is the largest importer of gold, which mainly meets the demand of the jewelery industry. In terms of quantity, the country imports 800-900 tonnes of gold annually.
Gems and jewelery exports declined 0.3% to $35.2 billion during the 11 months of the last fiscal.
Last year, the Center had increased the import duty on gold from 10.75% to 15% to curb the current account deficit (CAD).