The imports of gold fell by 48.49% to $1.96 billion in December on account of cash crunch in the system. The gold imports stood at $3.80 billion in December last year. A decline in gold imports pushed down the trade deficit to $10.36 billion during the month under review as against $11.5 billion in December 2015. The contraction in gold imports will help further moderate the current account deficit (CAD).
Silver imports too dipped by 81.55% to $87 million in December as against $472 million in the same month last year. 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.
India, the world’s second biggest gold consumer after China, imported 650 tonnes of the precious metal in 2015-16. Imports of the precious metal were on a decline since February this year till September. It recorded positive growth in October and November.