The commerce ministry’s latest data has showed that gold imports, which have a bearing on the current account deficit (CAD), plunged 57 percent to $6.8 billion (around Rs 50,658 crore) during the first half of this fiscal (H1FY21) amid a slump in demand due to the COVID-19 pandemic. In the corresponding period a year ago, gold imports stood at $15.8 billion (about Rs 1,10,259 crore).
Similarly, silver imports during April-September 2020 too dipped 63.4 percent to $733.57 million (about Rs 5,543 crore). The decline in gold and silver imports has helped in narrowing the country's trade deficit, difference between imports and exports, at $23.44 billion during April-September 2020-21 as against $88.92 billion in the year-ago period.
India is the largest importer of gold, which mainly caters to demand of the jewellery industry. In volume terms, the country imports 800-900 tonnes of gold annually. Gems and jewellery exports declined by about 55 percent to $8.7 billion in April-September 2020 amid the pandemic.