India’s gold imports, which impact the country’s current account (CAD) deficit, more than doubled to $38 billion between April and December this fiscal year due to stronger demand. high, according to data from the Ministry of Commerce.
Imports amounted to USD 16.78 billion in April-December 2020.
In December 2021, imports of this precious metal reached $4.8 billion, compared to $4.5 billion a year ago.
The surge in gold imports over the nine months contributed to the widening of the trade deficit to USD 142.44 billion from USD 61.38 billion in April-December 2020. Similarly, silver imports also increased to 2 billion USD in April-December 2021, compared to 762 million USD. in the same period of the previous year.
India is the second largest consumer of gold in the world after China. Imports mainly cover the demand of the jewelry industry.
Gemstone and jewelry exports in the nine months of the current fiscal year increased 71% to approximately $29 million.
India’s current account slipped to a deficit of $9.6 billion or 1.3 percent of GDP in the September quarter, according to the Reserve Bank.
The current account, which records the value of exports and imports of goods and services, as well as international capital transfers, was in surplus mode for both the periods a quarter ago and a year ago. a year.
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