Gold imports, that have an impression on the country’s accounting deficit (CAD), fell 8.86 % to USD 27 billion (about Rs 1.90 lakh crore) throughout the April-February period of the current financial year, according to commerce ministry data.
Imports of the yellow metal stood at USD 29.62 billion within the corresponding period of 2018-19
The decline in gold imports has helped in narrowing the country’s trade deficit to USD 143.12 billion during the April-February period of the current fiscal, as against USD 173 billion a year ago.
Gold imports had been recording negative growth since December last year. India is the largest importer of gold, that primarily caters to the demand of the jewelry business.
In volume terms, the country imports 800-900 tonnes of gold annually.
In volume terms, the country imports 800-900 tonnes of gold annually. To mitigate the negative impact of gold imports on the deficit and CAD, the govt. increased the duty on the metal to 12.5 % from 10 %.
Industry consultants claim that companies within the sector are shifting their producing bases to neighboring countries because of the high duty
Gems and jewellery exporters had asked for a discount on import duty to 4%.
Gems and jewellery exports declined 8.25 % to USD 33.78 billion in April-February this fiscal.
The country’s gold imports dipped by 3 % in price terms to USD 32.8 billion in 2018-19. from 2.9 % of GDP or USD 19 billion within the corresponding amount last year, according to the Reserve Bank’s information.