For the third month in a row, gold imports by India are said to have dropped in November as compared to last year. This could be attributed to low demand in the market against elevated supplies.
Unofficial statements suggest that overseas gold purchases stood at 111 tons last year, which dropped to 91.5 metric tons this year.
Gold, a much-sought after metal, has always been on an incline through the decades in India. But much of these imports and sales were unregulated with dealers finding ways to get around taxes. Gold demand in India slumped to a 7-year low in 2016 following the regulatory changes introduced by the Indian Government. According to the World Gold Council, India is set to revisit depressed sales this year with consumption touching low ends in the range of 650-750 tons.
The local market has ample supplies of the precious metal with inbound shipments totaling to 868.6 tons in just the first 11 months. This marks an increase of 68% compared to last year, according to Bloomberg data.
After traders took advantage of regulations that permitted them to evade taxes by buying from specific countries, local inventories saw a boost on account of imports. India, however, made the rules stricter in October which resulted in a slump period for gold.