The import of gold fell to $3.90 billion in the first quarter of the current fiscal. According to the data compiled by the Commerce Ministry, this is 48% lower compared to imports of $7.51 billion which stood in April-June 2015. The inbound shipments contracted for a fifth consecutive month in June by 38.5% to $1.20 billion.
The sliding prices of the precious metal in both global and domestic markets are seen as a contributory factor for the plunge. India is one of the largest gold importers in the world and imports mainly take care of demand of jewellery industry. This drop in import is expected to keep a lid on the current account deficit. The contraction helped narrow trade deficit to $8.11 billion last month compared to $10.82 billion in June 2015.
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