Gold import bill rises 13% at $34 bn in FY18, trend set to continue in FY19

Demand was higher last year due to rebalancing of portfolios by investors after demonetisation, says Sonal Varma, chief India economist at borkerage Nomura

Gold import in financial year 2017-18 is estimated at 13 per cent higher than the year before at $34 billion, the highest after 2014-15. The estimate for 2018-19 is at least another 10 per cent higher.

Sonal Varma, chief India economist at borkerage Nomura, says: "Demand was higher last year, due to rebalancing of portfolios by investors after demonetisation." She said the current level of import was not a big worry for the country's current account balance; oil import was.

Adding: "Portfolio rebalancing might spill over to FY19, with investors preferring higher allocation for gold. While rural demand has remained stagnant, as