India’s gold imports, which have a bearing on the country’s current account deficit (CAD), dipped by 4.23% to USD 12.64 billion during April-July 2024-25 due to global economic uncertainties, according to government data.
The imports stood at USD 13.2 billion in April-July 2023.
In July alone, the imports declined by 10.65% to USD 3.13 billion as against USD 3.5 billion in the same month last year.
The inbound shipments were also in negative during June (-38.66%) and May (-9.76%).
In April, the imports jumped to USD 3.11 billion from one billion in April 2023.
According to a jeweller, the high prices are discouraging the imports but they will go up from September as the festive season will start in India and the import duty cut benefit is also there.
The government has slashed the customs duty on gold and silver to 6% from 15%.
Gold prices rose Rs 300 to Rs 73,150 per 10 grams in the national capital on August 14 amid a jump in precious metal rates in the international markets.
In 2023-24, India’s gold imports surged by 30% to USD 45.54 billion.
Switzerland is the largest source of gold imports, with about 40% share, followed by the UAE (over 16%) and South Africa (about 10%).
The precious metal accounts for over 5% of the country’s total imports.
Despite the dip in gold imports, the country’s trade deficit (difference between imports and exports) widened to USD 23.5 billion in July and USD 85.58 billion during the first four months of this fiscal.
India is the world’s second-biggest gold consumer after China. The imports mainly take care of the demand by the jewellery industry.
The gems and jewellery exports during April-July this fiscal contracted by 7.45% to USD 9.1 billion.
India recorded a current account surplus of USD 5.7 billion or 0.6% of GDP in the March quarter. For FY24, the current account deficit narrowed to USD 23.2 billion or 0.7% of GDP against USD 67 billion or 2% of GDP in FY23.
A current account deficit occurs when the value of goods and services imported and other payments exceeds the value of the export of goods and services and other receipts by a country in a particular period.
As per the government data, silver imports jumped to USD 648.44 million during April-July 2024 as against USD 214.92 million in the year-ago period.
(With PTI inputs)
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