Gold imports surged 19.5% to $34.32 billion in 2014-15 financial year against $28.7 billion in the previous fiscal 2013-14, due to lower prices and easing of restrictions by the Reserve Bank. Rising gold imports have pushed the country's trade deficit to levels around $137 billion in 2014-15. Gold imports in March of 2014-15 fiscal, has doubled to $4.98 billion, which pushed the trade deficit to a four-month high of $11.79 billion.
Despite rising gold imports and higher trade deficit, Reserve Bank data showed that the country's current account deficit has narrowed to 1.7% for the first nine months of fiscal 2014-15, while CAD for April - December period in fiscal 2013-14 stood at $31.1 billion or 2.3% of GDP.
RBI scrapped the controversial 80:20 scheme, which had restricted gold imports to the importer's ability to export, on 28 November last year and the RBI and the government have been maintaining that the CAD level was comfortable, but the spike in gold imports may spark fresh worries.