Gold imports News

While gold imports have been on the rise after the duty cut announced during the Union Budget in July 2024, the huge surge in shipments during November had puzzled market analysts.

The report highlighted that sluggish FPI inflows in recent months, coupled with a stronger US dollar, are likely to exert pressure on the Indian rupee. Bank of Baroda expects the rupee to trade in a range of 84-85.5/USD in the near term. 

India's gold imports, which have a bearing on the country's current account deficit (CAD), dipped by 4.23 per cent to USD 12.64 billion during April-July 2024-25. 

Switzerland is the largest source of gold imports, with about 40 per cent share, followed by the UAE (over 16 per cent) and South Africa (about 10 per cent).

Gold prices have fluctuated in major Indian metro cities over the last 24 hours. The gold prices in Delhi is Rs 52,200 for 24 carat (10 grams) and Rs 47,850 for 22 carat (10 grams). In Kolkata, the price of 24 carat (10 grams) gold is Rs 52,200, whereas 22 carat (10 grams) gold is Rs 47,850.

The imports stood at USD 26.11 billion in April-February 2021. The gems and jewellery exports during the first nine months of the current fiscal grew by 57.5 per cent to USD 35.25 billion. Gold imports in volume terms in April-February 2022 stood at 842.28 tonnes.

Imports of the yellow metal had plunged to USD 79.14 million (Rs 599 crore) in the corresponding period last year, the data showed. Silver imports, however, dipped by 93.7 per cent to USD 27.56 million. Gems and jewellery exports increased to USD 6.34 billion during the first two months of the current fiscal as against USD 1.1 billion in the same period previous year.

Silver imports during the last fiscal, however, dipped by 71 percent to about USD 791 million. Imports of the yellow metal stood at USD 28.23 billion (about Rs 2 lakh crore) in 2019-20, the data showed. Despite growth in gold imports, the country's trade deficit narrowed to USD 98.56 billion during 2020-21 as against USD 161.3 billion in 2019-20. The demand for gold would further increase on account of the forthcoming auspicious Akshaya Tritiya and marriage season which could increase the CAD.

Imports of the yellow metal stood at USD 27 billion in April-February 2019-20. In volume terms, the country imports 800-900 tonnes of gold annually. The imports of gold jumped to USD 5.3 billion in February as compared to USD 2.36 billion in the same month last year, the data showed.

The world's second-biggest consumer of the precious metal imported 25 tonnes of gold in March, down from 93.24 tonnes a year ago, the source said, who is not authorised to speak to the media.

The CAD is the difference between the inflow and outflow of foreign currency.

Imports of the precious metal stood at USD 16.96 billion in April-September 2017-18 financial year, according to the commerce ministry data.

MD of the Indian operation of the industry body, said gold not at the centre of the current account deficit issue.

The effort is a part of the exercise by the government to check fall in rupee value and control current account deficit (CAD).

India's gold imports fell 40.31 per cent to USD 2.49 billion in March, which is expected to keep a lid on the current account deficit (CAD).

Trade deficit widened to USD 13.82 billion in the month under review from USD 13.39 billion in November 2016.

In the first nine months of 2017, the country`s gold imports surged 131 percent to 638.4 tonnes, according to GFMS data, as jewellers advanced buying in the first half of the year ahead of a sales tax hike that took effect from July 1.

Trade deficit narrowed to 7-month low of USD 8.98 billion in the month under review from USD 9.07 billion in September 2016.

India`s trade deficit narrowed to $11.45 billion in July from a month ago, following a slowdown in merchandise imports, government data showed on Monday.

Gold imports from South Korea, with which India has a free trade agreement since January 2010, has jumped to USD 338.6 million during July 1 and August 3 this year.