India’s gold imports during the first quarter of the current financial year dropped by nearly 25 per cent, primarily on account of a global decline in the value of gold prices. Imports for the April-June quarter stood at $8.43 billion, down from $11.26 billion in Q1 of FY 17-18.
There has been a steady decline in gold imports over the last six months, with a total of 44 tonnes of gold imported in the month of June. Imports in June 2017 stood at 58.9 tonnes.
India’s gold exports in the first six months of 2018 stood at 318.2 tonnes, an overall drop of 38 per cent.
The dip in gold imports can help the country improve its current account deficit or CAD, which was $48.7 billion in 2017-18. CAD is essentially the gap between the outflow and inflow of forex.
India’s gold imports typically range from 700-800 tonnes each year, making it the foremost importer of gold in the world. The dip in imports during the last quarter could be attributed to a drop in demand, thanks to the Adhik Maas (an additional month as per the Hindu calendar). A number of people consider it inauspicious to purchase gold during this period.
While gold imports dipped, silver imports in the month of June doubled to $364.24 million.
There was also an increase in the exports of gems and jewellery from India. This industry saw a jump of 3 per cent in June.
Sources: Livemint, Moneycontrol, Economic Times
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