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Gold imports slip 7% to $20.57 billion in April-November period of FY20

02 Jan 2020 Evaluate

The commerce ministry’s data has showed that gold imports of India slipped around 7% to $20.57 billion during April-November period of the current financial year (FY20) as compared to $22.16 billion in the same period of 2018-19. The decline in yellow metal imports has helped in narrowing the country's trade deficit to $106.84 billion during the eight-month period under review as against $133.74 billion in the year-ago months.

Gold import had been recording a negative growth since July this year. However, it grew about 5% to $1.84 billion in October and 6.6% to $2.94 billion in November. India is the largest importer of gold, which mainly caters to the demand of the jewellery industry. In volume terms, the country imports 800-900 tonne of gold annually.

In order to mitigate the negative impact of gold imports on trade deficit and current account deficit (CAD), the government had increased the import duty on the metal to 12.5% from 10% in this year's Budget. Meanwhile, the country's gold imports dipped about 3% in value terms to $32.8 billion in 2018-19.

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