India's gold imports News

Tracking overseas markets, local gold prices surged to Rs 29,745 ($461.34) per 10 grams in mid-November, an 8.4 percent rise since the start of 2017.

Indian demand is likely to be around 650 tonnes in 2017, compared to a 10-year average of 845 tonnes.

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.

"Demand was higher than normal in June as some consumers advanced buying to avoid paying higher tax," Sudheesh Nambiath, a senior analyst with GFMS, a division of Thomson Reuters, said on Tuesday.  

In India, gold demand has fallen as the wedding season is nearly over and farmers are busy in the sowing of summer-sown crops.

Nearly three-fold jump in gold imports at USD 4.95 billion led to widening of trade deficit during the last month. It was USD 6.27 billion in May 2016.

India's gold imports declined by about 13.5 percent to USD 27.4 billion in 2016-17, which is expected to keep a lid on the current account deficit.

India's exports continued to grow for the fifth straight month, expanding by 4.32 percent to USD 22.11 billion in January against USD 21.19 billion in the same month of 2016.

India's gold imports fell sharply by 76 percent to 60 tonnes in the April-July period this fiscal on high import duty and other taxes, according to gold and silver refiner MMTC-PAMP.  

Gold imports fell sharply by 67.33 percent to 19.6 tonnes in April 2016 as jewellers' strike opposing one percent excise duty on non-silver jewellery significantly hit demand for the metal, according to gold and silver refiner MMTC Pamp.  

The world`s second biggest consumer imports in March slumped to 18 tonnes from 125 tonnes in the previous year.

With the objective to bring down physical buying of gold, the Sovereign Gold Bonds Scheme was launched that offers 2.75 percent annual interest rate.

The trade gap or trade deficit during April-September 2015-16 has narrowed to USD 67.99 billion as against USD 72.69 billion in the same period last fiscal.

Hit by global slowdown, India's exports contracted for the eighth straight month by 10.3 percent in July to USD 23.13 billion, pushing the trade deficit to USD 12.81 billion.

Gold imports in the fiscal year 2014/15 ended March 31 jumped to 900 tonnes, up 36 percent from a year ago.

Import restrictions on gold may have led to increase in smuggling of the precious metal in recent years, Parliament was informed Friday.

The six-fold rise in gold imports is a matter of concern but the government will adopt a wait and watch stand and take a call at an appropriate time, a top commerce ministry official said here Tuesday.

The country's gold imports are likely to rise to about 70-75 tonnes per month against the present average of 50-60 tonnes, a senior industry official said here.