You are here: Home » Markets » Commodities » commodity gold
Business Standard

Gold imports jump three-fold to $15 bn as festive season nears

The imports are expected to increase on account of the forthcoming festival season, which will start from the end of this month

Press Trust of India  |  New Delhi 

Gold, Jewelry, Shop, Sales
Photo: Reuters

The country's recorded a three-fold jump to USD 15.24 billion during the April-August period of the current fiscal, commerce ministry data showed.

imports, which has a bearing on the country's current account deficit (CAD), stood at USD 5.08 billion in April-August 2016-17.


In August this year, of the precious metal rose to USD 1.88 billion from USD 1.11 billion in the same month of the previous fiscal.

Surge in last month contributed to the widening of trade deficit to USD 11.64 billion as against USD 7.7 billion in August 2016.

The are expected to increase on account of the forthcoming festival season, which will start from the end of this month.

Increase in inbound shipments of is also one of the reasons for higher current account deficit (CAD).

CAD rose sharply to USD 14.3 billion -- or 2.4 per cent of -- at the end of first quarter of 2017-18.

In general terms, CAD refers to the difference between inflow and outflow of foreign exchange that has an impact on the exchange rate.

Worried over surge in from South Korea, with which India has a agreement, the government has restricted inbound shipments of the precious metal.

India is the world's second biggest consumer after China. The mainly take care of jewellery industry demand.

At present, import attracts 10 per cent duty. The gems and jewellery industry along with the commerce ministry have time and again urged the to consider a cut in the import duty.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sun, September 17 2017. 14:38 IST
RECOMMENDED FOR YOU