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.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: