In a development that could ease the worries of rise in current account deficit (CAD), India’s gold import witnessed a fall of about 24 per cent to $23.22 billion in April-February period of the last fiscal, compared to $30.71 billion in the corresponding period of 2015-16. However, on a month-on-month basis, gold import jumped to $ 3.48 billion in February as against $ 1.4 billion in the same month last year.
The contraction in the gold import during April-February helped in narrowing the trade deficit to $95.2 billion during the 11-month period of 2016-17, as against $114.3 billion in the same period of the previous fiscal. For the full year 2015-16, CAD stood at $ 22.1 billion, or 1.1 per cent of GDP, as against $ 26.8 billion, or 1.3 per cent, in 2014-15.
According to the commerce ministry data, India had witnessed a 43 per cent year on year decline in gold imports in the month of January, 2017, mainly due to demonetization, on subdued demand resulting from cash crunch. India is one of the largest gold importers in the world, and the imports mainly take care of demand from the jewellery industry. Total gold imported during 2015-16 stood at 968 tonnes.
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