India’s gold imports shot up by about 61 percent to 155 tonnes in the first two months of the current fiscal mainly due to weak prices globally and the easing of restrictions by the Reserve Bank.
In the international market, gold has been trading weak over the past few months. On Friday, it closed at USD 1,095 in New York market.
Large imports of gold impact the country’s current account deficit, which occurs when value of import of goods and services is more than its exports. The CAD in 2014-15 shrank to 1.3 percent of GDP from 1.7 percent in 2013-14.
The Reserve Bank and the government have maintained that the CAD level is comfortable.
In 2014-15, India imported 915.54 tonnes of gold as against 661.71 tonnes in the previous financial year.