Gold Import Increased: India’s gold import increased by 26.7 percent to 35.95 billion dollars. Import of gold affects the country’s current account deficit (CAD). According to government data, imports have increased as demand has increased.
Gold Import Increased
Gold is very attractive in India. Everyone wants to buy gold. Gold is given on every auspicious occasion be it wedding or birthday. Diwali and Dhantrayodashi are also bought in large quantities. But this love of Indians for gold is killing the economy.
This is because India’s gold import has increased by 26.7 percent to 35.95 billion dollars. Import of gold affects the country’s current account deficit (CAD). According to government data, imports have increased as demand has increased.
From which country comes the most gold in India?
Gold imports were $28.4 billion during the same period a year ago. According to data released by the Ministry of Commerce, the import of this precious metal increased by 156.5 percent to three billion dollars in December 2023. Switzerland is the largest source of gold imports, accounting for about 41 percent.
India is the largest consumer of gold in the world
It is followed by the United Arab Emirates (about 13 percent) and South Africa (about 10 percent). The share of this gold in the total import of the country is more than five percent. Currently, there is an import duty of 15 percent on gold. India is the second largest consumer of gold in the world after China.
Gold is imported mainly to meet the demand of the jewelery industry. Gems and jewelery exports declined by 16.16 per cent to $24.3 billion during this period.
India’s current account deficit narrowed
According to data released by the Reserve Bank of India on December 26 last year, India’s current account deficit narrowed sharply to one per cent of GDP or $8.3 billion in the second quarter of this fiscal year. The main reason for this is the reduction in trade deficit and the increase in service exports.
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