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Gold imports fell 32.7% to $19.74 billion during April-January period

21 Feb 2017 Evaluate

The imports of gold fell by about 32.7% to $19.74 billion during the April-January period of this fiscal compared to $29.31 billion recorded in the corresponding period of 2015-16. Gold imports dipped by about 30% to $2.04 billion in January as against $2.91 billion in the same month last year.

The contraction in imports helped in narrowing the trade deficit to $86.38 billion in April-January period as against $107.74 billion in the same period previous year. In volume terms, 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 imported 650 tonnes of gold in 2015-16.

India is one of the largest gold importers in the world, and the imports mainly take care of demand from the jewellery industry. The softening prices of the precious metal in the domestic and world markets could be the reason for the dip in imports. The inbound shipments were also impacted in the wake of cash crunch due to demonetization.


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