Gold imports surge 8.13 pc to USD 1.55 bn in January

By: | Published: February 14, 2015 11:36 AM

Gold imports surged by 8.13 per cent year-on-year to USD 1.55 billion in January on easing of restrictions by the Reserve Bank...

gold price, gold rate, Gold price, bullion market, Silver price, jewelleryIndia is the largest importer of gold, which is mainly utilised to meet the demand of jewellery industry.

Gold imports surged by 8.13 per cent year-on-year to USD 1.55 billion in January on easing of restrictions by the Reserve Bank.

Imports of the precious metal stood at USD 1.44 billion in the same month in 2014.

Increase in gold imports impacts the current account deficit (CAD).

In December last year, imports grew by 7.39 per cent to USD 1.34 billion.

The Reserve Bank and the government have said that CAD levels are comfortable, but rise in gold imports may cause fresh worries to them.

On November 28 last year, the Reserve Bank had scrapped the controversial 80:20 scheme.

Under the scheme, put in place in August 2013 to curb high gold inflows that were widening the current account deficit, at least 20 per cent of the imported gold had to be mandatorily exported before bringing in new lots.

Contraction in exports and imports in January has helped trade deficit narrow marginally.

The trade gap aggregated at USD 8.32 billion during the month under review as against USD 9.45 billion in the same month last year.

CAD in the first half of this fiscal declined to 1.9 per cent of GDP (USD 18 billion) from 3.1 per cent (USD 27 billion) in the same period previous year.

India is the largest importer of gold, which is mainly utilised to meet the demand of jewellery industry.

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