The imports of gold more than doubled to $3.5 billion in October on account of high festival demand. Gold imports had stood at $1.67 billion in October last year. The imports of the precious metal were on a decline since February this year till September.
The jump in gold imports will also impact the Current Account Deficit (CAD). The increase in gold imports pushed the trade deficit to 10-month high of $10.16 billion in October from $9.69 billion during the same month last year.
India, the world’s second biggest gold consumer after China, imported 650 tonnes in 2015-16. The country’s total official gold imports declined to 60 tonnes in April-July of this fiscal, much lower than 250 tonnes in the year-ago period.