Gold imports up 6.4% to $13 billion in April-July this fiscal year


India’s gold imports, which impact the country’s current account (CAD) deficit, increased by 6.4% to $12.9 billion between April and July this fiscal year due to healthy demand, according to government data.

Imports were $12 billion in the same period a year ago.

In July 2022, however, precious metal imports fell sharply by 43.6% to $2.4 billion, according to the latest data released by the Department of Commerce.

Rising gold and oil imports in the first four months of this fiscal year contributed to a record trade deficit of $30 billion, up from $10.63 billion in April-July 2021.

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 first four months of the current fiscal year rose about 7% to $13.5 billion.

A wider trade gap in 2021-22 has widened the country’s current account deficit to 1.2% of GDP from a surplus of 0.9% in FY21, according to published Reserve Bank data. in June.

For the January-March 2022 quarter, the CAD tightened on a sequential basis to USD 13.4 billion or 1.5% of GDP from USD 22.2 billion or 2.6% of GDP in the October-December quarter 2021 .

Current account deficit occurs when the value of imported goods and services and other payments exceeds the value of exports of goods and services and other receipts by a country during a given period.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor


About Author

Comments are closed.