Gold imports rose 26.7 percent to $35.95 billion, with India the largest source of gold from the country.

Increase in gold import: The love of Indian people for gold is well known and due to this the import of gold is increasing year by year. This has happened once again and there has been news of an increase in the import of gold in the country. India’s gold imports rose 26.7 percent to $35.95 billion in the first nine months (April-December) of the current fiscal year.

Import of gold has an impact on the current account deficit (CAD) of the country. Gold imports were $28.4 billion in the same period a year ago. According to the data released by the Ministry of Commerce, the import of this precious metal in December 2023 reached three billion dollars with an increase of 156.5%. According to official data, the reason for the increase in gold imports last year was the continuous increase in demand for jewellery.

From which country comes the most gold in India?

Switzerland is the largest source of gold imports, accounting for around 41 percent of imports. It is followed by the United Arab Emirates (about 13 percent) and South Africa (about 10 percent). The share of this precious metal in the total imports of the country is more than five percent.

Gold imports increased but the country’s trade deficit narrowed.

Currently there is 15% import duty on gold. Despite the increase in gold imports, the country’s trade deficit (difference between imports and exports) narrowed to $188.02 billion in the first three quarters of this fiscal year compared to $212.34 billion in April-December 2022.

India is the world’s largest consumer of gold.

After China, India is the second largest consumer of gold in the world. Gold is mainly imported to meet the demand of the jewelery industry. Surprisingly, the export of gems and jewelery declined by 16.16% to $24.3 billion during this period.

India’s current account deficit narrowed in the second quarter of the current fiscal year.

According to Reserve Bank of India data released on December 26 last year, India’s current account deficit narrowed sharply to one percent of GDP, or $8.3 billion, in the second quarter of this fiscal year. This is mainly due to reduction in trade deficit in goods and increase in services exports. A current account deficit occurs when the value of a country’s imports of goods and services and other payments exceeds the value of its exports of goods and services and other receipts in a given period.

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