Gold imports lose steam, fall 36.5% to $3.5 bn in Nov

Gold imports shrank 36.5% to $ 3.53 billion in November on the back of falling prices of the yellow metal, something that will keep the country's current account deficit (CAD) in check.

The prices have been declining at global as well as domestic markets.

The gold imports stood at $ 5.57 billion in November 2014, according to Commerce Ministry data. The figure for November this year is the highest in the current fiscal.

The contraction in imports helped narrow the trade deficit to $ 9.78 billion in the previous month. It stood at $ 16.2 billion in November 2014.

This year, the imports of the yellow metal grew 62.2% and 140% in July and August, respectively. In September, the inward shipments declined 45.6%.

India is the largest importer of gold in the world, the demand of which mostly comes from the jewellery industry.

During April-November this fiscal, the imports dropped to $ 22.65 billion as against $ 24.49 billion in the same period last year.

In 2014-15, gold was the third-largest commodity imported to India after crude oil and electronic items. That fiscal, the country's imports stood at $ 34.32 billion.

CAD was down at 1.6% of GDP at $ 8.2 billion in the September quarter, mainly due to a lower trade deficit.