Categories: Business

Gold imports declined significantly in April-May, gold worth $ 7.914 million came into the country

Photo: GOOGLE

old imports plunge to USD 79.14 mn during Apr-May 2020

new Delhi. Gold imports, which had an impact on the current account deficit (CAD), declined significantly during the first two months of FY 2020-21 to $ 7.914 million. According to the Commerce Ministry data, the reason for this decline is due to a huge reduction in demand in the wake of the Kovid-19 epidemic. In the same period of 2019-20, gold imports amounted to $ 8.75 billion.

The fall in gold imports has helped reduce the country's trade deficit (the gap between imports and exports). The gap between imports and exports declined to $ 9.91 billion during the period, from $ 30.7 billion a year earlier. The Reserve Bank of India said that due to the narrowing of the trade deficit, India saved a current account surplus of $ 0.6 billion or 0.1 per cent of gross domestic product (GDP) in the January-March quarter, compared to the year-ago period. Losses of $ 4.6 billion, or 0.7 percent of GDP, were reported.

Gold imports have been declining since December last year. In March, April and May, the decline was 62.6 percent, 99.93 percent and 98.4 percent respectively. India is the largest importer of gold, mainly catering to the demand of the jewelery industry. In terms of quantity, the country imports 800–900 tonnes of gold annually. Gems and jewelery exports declined 82.46 percent to $ 1.1 billion in April-May 2020. Similarly, silver imports during the first two months of 2020-21 also declined by 30.7 percent to $ 43.789 million.

This post was published on July 4, 2020 9:09 am

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