Gold imports plunge, but it’s a good news for India

By: |
Updated: Jul 03, 2020 8:17 PM

The decline in gold imports has helped in narrowing the country's trade deficit, difference between imports and exports, to USD 9.91 billion during the period, against USD 30.7 billion a year ago.

Imports of the yellow metal stood at USD 8.75 billion in the corresponding period of 2019-20.

Gold imports, which have a bearing on the current account deficit (CAD), plunged significantly to USD 79.14 million during the first two months of 2020-21 due to a significant fall in demand in the wake of the COVID-19 pandemic, according data from the commerce ministry.

Imports of the yellow metal stood at USD 8.75 billion in the corresponding period of 2019-20. The decline in gold imports has helped in narrowing the country’s trade deficit, difference between imports and exports, to USD 9.91 billion during the period, against USD 30.7 billion a year ago.

Due to the significant narrowing of trade deficit, India recorded a current account surplus of USD 0.6 billion or 0.1 per cent of GDP for the January-March quarter against a deficit of USD 4.6 billion or 0.7 per cent of GDP in the year-ago period, the Reserve Bank of India has said.

Gold imports had been recording a negative growth since December last year. The fall in March, April and May was to the tune of 62.6 per cent, 99.93 per cent and 98.4 per cent, respectively. 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 tonne of gold annually. Gems and jewellery exports declined 82.46 per cent to USD 1.1 billion in April-May 2020.

Similarly, silver imports during the first two months of 2020-21 also dipped by 30.7 per cent to USD 437.89 million.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Centre sets target of 362 crore litres of ethanol for sugar mills in 2020-21
2Gold prices today again slip, remain below Rs 53,000 per 10 gm; investors watching US-China trade talks
3States’ auto fuel tax receipts seen rising 9% to Rs 1.96 lakh crore in FY21