During the first seven months of the current financial year, April-October, gold imports declined by 47.42 per cent to $ 9.28 billion. This information has been obtained from the data of the Ministry of Commerce. Gold imports affect the current account deficit (CAD). Gold demand has been severely affected due to the Kovid-19 epidemic, which has also led to a huge decline in yellow metal imports.
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In the same period last fiscal, gold imports stood at $ 17.64 billion. However, gold imports increased by 36 percent in October. During April-October, silver imports also fell by 64.65 percent to $ 74.2 million.
Trade deficit reduction
The decline in gold and silver imports has also reduced the country’s trade deficit. There is a trade deficit between imports and exports. The trade deficit declined to $ 32.16 billion in April-October from $ 100.67 billion in the same period of the previous fiscal.
India’s largest importer of gold
India is the largest importer of gold. Gold is mainly imported to meet the demand of the jewelery industry. India imports 800 to 900 tonnes of gold annually. In the first seven months of the current financial year, exports of gems and jewelery fell by 49.5 percent to $ 11.61 billion.