India’s gold imports, which influence the current account deficit, fell by around 30% to $31.8 billion between April and February 2023 due to high customs duties and global economic uncertainties, according to ministry data. trade.
Imports of the yellow metal stood at USD 45.2 billion in the corresponding period of 2021-22.
Imports have been in the negative zone since August 2022.
However, silver imports increased by 66% to USD 5.3 billion during April-February 2023.
However, the significant drop in gold imports has not helped reduce the country’s trade deficit, the difference between imports and exports. The merchandise trade deficit for April-February 2022-23 was estimated at USD 247.52 billion against USD 172.53 billion in the same period of the previous year.
According to industry experts, high gold import tariffs and global economic uncertainties are the reason for the drop in imports of the precious metal.
“India imported about 600 tons of gold between April and January 2023, and it has decreased due to high import tariffs. The government should consider the tariff part to help domestic industry and boost exports,” the former said. Chairman of GJEPC and Managing Director of Kama Jewelry said Colin Shah.
Over the years, it has been observed that any increase in gold prices reduces the demand for gold along with the sale of old gold, and another factor is the higher tariff that encourages unofficial gold import routes, added.
India is the largest importer of gold, which mainly caters to the demand of the jewelry industry. In terms of volume, the country annually imports between 800 and 900 tons of gold.
Gem and jewelry exports decreased 0.3% to $35.2 billion during the 11 months of the last fiscal year.
Last year, the Center raised the gold import tariff to 15 percent from 10.75 percent to control the current account (CAD) deficit.
First posted: 09 Apr 2023 | 11:38 IS
