Gold imports shrank 36.5 per cent to USD 3.53 billion in November on the back of falling prices of the yellow metal, something that will keep the country’s current account deficit (CAD) in check.
The prices have been declining at global as well as domestic markets.
The gold imports stood at USD 5.57 billion in November 2014, according to commerce ministry data. The figure for November this year is the highest in the current fiscal.
The contraction in imports helped narrow the trade deficit to USD 9.78 billion in the previous month. It stood at USD 16.2 billion in November 2014.
This year, the imports of the yellow metal grew 62.2 per cent and 140 per cent in July and August, respectively. In September, the inward shipments declined 45.6 per cent.
India is the largest importer of gold in the world, the demand of which mostly comes from the jewellery industry.
During April-November this fiscal, the imports dropped to USD 22.65 billion as against USD 24.49 billion in the same period last year.
In 2014-15, gold was the third-largest commodity imported to India after crude oil and electronic items. That fiscal, the country’s imports stood at USD 34.32 billion.
CAD was down at 1.6 per cent of GDP at USD 8.2 billion in the September quarter, mainly due to a lower trade deficit.