27% increase in gold imports

New Delhi, January 31: The Indian government has reported a substantial surge in gold imports, revealing a notable increase of 26.70% to INR 2.95 lakh crore during the period from April to December last year. In comparison, the imports during the same period in the previous fiscal year stood at INR 2.30 lakh crore.

Data released by the Ministry of Commerce indicates that gold imports experienced a remarkable 157% surge in December 2023 alone, reaching INR 24,900 crore. Switzerland emerged as the leading source, accounting for nearly 100% of the country’s gold imports. The United Arab Emirates contributed 13%, while South Africa accounted for 10%. Gold imports now constitute more than 5% of the country’s total imports. Presently, the import duty on gold stands at 15%.

Despite the notable increase in gold imports, India’s trade deficit saw a reduction to INR 13.01 lakh crore in the April-December period of the current fiscal year, compared to INR 17.62 lakh crore in the corresponding period of the previous financial year. It is noteworthy that during this same period, exports of gems and jewelry experienced a decline of 16.16%, totaling INR 1.02 lakh crore.

This surge in gold imports and the evolving trade dynamics highlight the economic trends and trade balances that the Indian government is closely monitoring amid global market fluctuations.