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Gold imports fall 6.77% during April-December 2019

27 Jan 2020 Evaluate

India’s gold imports has dipped by 6.77% to $23 billion during April-December 2019 as against last year same period's $24.73 billion. This has contributed to trim the country’s current account deficit (CAD) to $118 billion during the period, compared to last year's $148.23 billion.

India, the largest importer of gold, imports about 800-900 tonne of gold annually in volume terms. The government had increased import duty on the metal to 12.5% from 10%, to mitigate the negative impact of gold imports on trade deficit and CAD.

Meanwhile, gems and jewelry exports declined 6.4% to $27.9 billion in April-December this fiscal. The country's imports in terms of value dipped by 3% to $32.8 billion in 2018-19. According to RBI data, the CAD narrowed to 0.9% of gross domestic product or $6.3 billion in July-September 2019 from 2.9% or $19 billion in corresponding period previous year.

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