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

Jayant Patil claims BJP used irrigation ‘scam’ to blackmail Ajit Pawar; Fadnavis, NCP chief hit back

Medical College expels 5 MBBS students from hostel for ragging juniors

Insulting women is in DNA of Cong leaders, alleges Jharkhand BJP

Man arrested from Delhi for calling up Pappu Yadav posing as aide of Lawrence Bishnoi

Tejasvi Surya hits out at Kharge, CMs of Cong-ruled states over poll promises

Farooq Abdullah seeks inquiry into spike in terror attacks in Valley since Omar’s swearing-in

Sabarimala pilgrims to get free insurance coverage of Rs five lakh

Related Articles More

Sensex, Nifty decline on selling in IT shares, FII sellout; end Samvat 2080 with 22% gains

Sensex, Nifty decline in early trade on unabated foreign fund outflows, selling in IT stocks

Gold surges Rs 1,000 to breach Rs 82k-mark as Diwali sparkles demand

Car makers witness record sales on Dhanteras; Oct bookings up by 30%

Dhanteras begins on slow note; Jewellers expect footfalls to increase

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

Jayant Patil claims BJP used irrigation ‘scam’ to blackmail Ajit Pawar; Fadnavis, NCP chief hit back

Medical College expels 5 MBBS students from hostel for ragging juniors

Insulting women is in DNA of Cong leaders, alleges Jharkhand BJP

Man arrested from Delhi for calling up Pappu Yadav posing as aide of Lawrence Bishnoi

Tejasvi Surya hits out at Kharge, CMs of Cong-ruled states over poll promises

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.