Gold bars are displayed at the gold jewelery shop. File | Photo Credit: Reuters
After registering a negative growth, the country’s gold imports, which affect the current account deficit (CAD), increased by 192.13% in March to $ 4.47 billion, which according to the data of the Ministry of Commerce due to a significant increase in yellow metal prices.
Gold imports in January 2024 were $ 1.53 billion.
During the April-March 2024–25 financial year, during the financial year of April-March 2024-25 in 2023-24, the inbound shipment increased by 27.27% to $ 45.54 billion to $ 58 billion.
Increase in imports also indicates strong investors in precious metal as a safe property. Other reasons include asset diversification of gold due to global uncertainties, increasing demand from banks and jumping prices.
On 17 April, gold prices increased by ₹ 70, another record of 10 grams per 10 98,170 in the national capital became high. Prices increased to high record due to a weak dollar, increasing the stress of trade war, and increasing concerns over global economic growth following tariff announcements by US President Donald Trump.
However, silver prices fell from ₹ 1,400 to ₹ 98,000 per kg. White metal settled at around ₹ 99,400 per kg in the previous market.
Silver imported in March ranged from 85.4% to $ 119.3 million. It was below 11.24% year-on-year in the financial year of 2024-25.
Switzerland is the largest source of gold imports, with about 40%, followed by UAE (more than 16%) and South Africa (about 10%).
Precious metal is 8% of the country’s total imports.
In terms of volume, imports at 757.15 tonnes in 2023–24 in 2024–25 increased to 757.15 tonnes.
Gold imports in February decreased by about 62%, while it increased by 40.8% in January and 55.39% in December 2024. Jump into gold imports increased the country’s trade deficit (difference between imports and exports) to $ 21.54 in March. It touched an all -time high of $ 282.82 billion in the last financial year.
India is the second largest gold consumer in the world after China. Imports mainly take care of demand by the jewelery industry.
During the month, the export of gems and jewelery increased by 10.62% year-over to about 3 billion dollars. However, it ranged from $ 32.7 billion to $ 29.82 billion in 2023-24 in 2023-24.
India’s CAD $ 11.5 billion, or 1.1%of GDP (GDP), $ 10.4 billion (1.1%of GDP 1.1%) in the December quarter, mainly due to high trade deficit. It widened to $ 37.0 billion (1.3%of GDP) during April-December 2024, which was from $ 30.6 billion (1.1%of GDP) during the previous year’s relevant period.
Published – 18 April, 2025 02:39 pm IST