india’s gold Imports declined by 4.23 per cent to $12.64 billion during April-July in the current financial year (2024-25) due to global economic uncertainties. Gold imports have an impact on the country’s current account deficit (CAD). It was $13.2 billion in the same period last year. According to government data, imports declined by 10.65 per cent to $3.13 billion in July alone, as against $3.5 billion in the same month last year. Imports also declined during June (-38.66 per cent) and May (-9.76 per cent). Experts say that the record rise in the price of gold has reduced demand. Its impact has also been seen on imports. Imports have declined.
High prices are discouraging imports
However, imports rose to $3.11 billion in April from $1 billion in April, 2023. According to a jeweler, high prices are discouraging imports, but it will pick up from September as the festive season will begin in India and the benefit of reduction in import duty will also be available. The government has reduced customs duty on gold and silver from 15 per cent to six per cent. Gold prices in the national capital rose by Rs 300 to Rs 73,150 per 10 grams on August 14 amid a surge in the prices of precious metals in the international markets.
Switzerland is the biggest source of gold imports
India’s gold imports grew 30 per cent to $45.54 billion in FY2023-24. Switzerland is the largest source of gold imports, accounting for nearly 40 per cent, followed by the United Arab Emirates (over 16 per cent) and South Africa (about 10 per cent). The precious metal accounts for more than five per cent of the country’s total imports.
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