The commerce ministry in its data has showed that gold imports, which have a bearing on the current account deficit (CAD), plunged significantly to $79.14 million during the first two months of 2020-21, as compared to imports of the yellow metal stood at $8.75 billion in the corresponding period of 2019-20, due to a significant fall in demand in the wake of the COVID-19 pandemic. The decline in gold imports has helped in narrowing the country's trade deficit, difference between imports and exports, to $9.91 billion during the period, against $30.7 billion a year ago.
Gold imports had been recording a negative growth since December last year. The fall in March, April and May was to the tune of 62.6 per cent, 99.93 per cent and 98.4 per cent, respectively. 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. Gems and jewellery exports declined 82.46 per cent to $1.1 billion in April-May 2020. Similarly, silver imports during the first two months of 2020-21 also dipped by 30.7 per cent to $437.89 million.
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