Gold imports plunge 9% to $24.64 billion during April-January: Govt data
PTI, Feb 16, 2020, 2:30 PM IST
New Delhi: Gold imports, which have a bearing on the country’s current account deficit (CAD), fell about 9 per cent to $24.64 billion (about Rs 1.74 lakh crore) during April-January period of the current financial year, according to Commerce Ministry data.
Imports of the yellow metal stood at USD 27 billion in the corresponding period of 2018-19.
The decline in gold imports has helped in narrowing the country’s trade deficit to $133.27 billion during April-January period of the current fiscal as against $163.27 billion a year ago.
Gold imports have been recording a negative growth since July last year. However, it recorded positive growth in October and November last year, only to contract by about 4 per cent in December and 31.5 per cent in January this year.
India is the largest importer of gold, which mainly caters to the demand of the jewellery industry.
In volume terms, the country imports 800-900 tonnes of gold annually.
To mitigate the negative impact of gold imports on the trade deficit and CAD, the government increased the import duty on the metal to 12.5 per cent from 10 per cent.
Industry experts claim that businesses in the sector are shifting their manufacturing bases to neighbouring countries due to the high duty.
Gems and jewellery exporters had asked for a reduction in import duty to 4 per cent.
Gems and jewellery exports declined 1.45 per cent to $25.11 billion in April-January this fiscal.
The country’s gold imports dipped about 3 per cent in value terms to $32.8 billion in 2018-19.
The CAD narrowed to 0.9 per cent of gross domestic product (GDP) or $6.3 billion in July-September 2019 from 2.9 per cent of GDP or $19 billion in the corresponding period last year, according to the Reserve Bank’s data.
Imports of rough diamonds contracted 15.54 per cent to about $11 billion during April-January 2019-20, according to the data of the Gem and Jewellery Export Promotion Council.
However, import of gold bars grew 3.56 per cent to $6.6 billion during the period.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Stock markets stage strong rebound after 4 days of slump, Sensex rallies 599 pts
PHF Leasing Limited raises $10 Mn through a mix of equity and debt
CCPA asks FSSAI to probe claim of Nestle adding sugar to baby products
Markets tank in early trade as Middle East tensions flare-up
Tesla shares tumble below $150 per share, giving up all gains made over the past year
MUST WATCH
Latest Additions
Injuries don’t define you: Mohammed Shami shares rehab update
Shivakumar desperately wants to become CM, says K’taka BJP chief Vijayendra
Scribe throws lapel microphone towards Sharad Pawar in Baramati; cops give clean chit
India delivers first batch of BrahMos missiles to Philippines
Air India cancels Dubai flights due to operational disruptions