Gold imports, which have a bearing on the country’s current account deficit (CAD), fell 3.3% to $26.11 billion during April-February 2020-21, according to the commerce ministry data.
How much gold does India import?
- Imports of the yellow metal stood at $27 billion in April-February 2019-20.
Gold imports slip 3.3% to $26.11 billion in Apr-Feb: Govt data
The decline in gold import has helped in narrowing the country’s trade deficit to $84.62 billion during the 11-month of the current fiscal, as against $151.37 billion a year ago.
India is the largest importer of gold, which mainly caters to the demand of the jewelry industry.
In volume terms, the country imports 800-900 tonnes of gold annually.
To promote the export sector, the government has reduced the import duty in this Budget on the metal to 7.5%. However, it also attracts agriculture infrastructure and development cess at the rate of 2.5%.
Gems and jewellery exports declined 33.86% to $22.40 billion in April-February 2020-21.
The imports of gold jumped to $5.3 billion in February as compared to $2.36 billion in the same month last year, the data showed.
Silver imports during the 11 months have dipped by 70.3% to $780.75 million.