The imports of gold dipped by 45.62% and stood at $2.05 billion in September after recording a sharp rise in August. The price of gold is declining in both global and domestic markets and is one of the reasons for the plunge in imports. The gold imports stood at $3.78 billion in September 2014.
The contraction in imports helped in narrowing the trade deficit to $10.47 billion in September. However, this year, the imports of the yellow metal were up 62.2% and 140% in July and August, respectively.
India is the largest importer of gold in the world. The imports mainly cater to the demand of jewellery industry. In 2014-15, gold was the third largest commodity imported in India after crude oil and electronic items.