New Delhi (India), 10th April 2023: According to figures from the commerce ministry, India’s gold imports plunged sharply between April and February 2023, falling by roughly 30% to $31.8 billion.
According to the report, the fall in imports was caused by high customs duties and volatility in the world economy. Imports of gold, which are related to the current account deficit, were $45.2 billion in the same period in 2021–22. However, since August 2022, gold imports have been in the negative territory.
During the period of April to February 2023, imports of silver increased by 66% to $5.3 billion, while imports of gold decreased.
The country’s trade deficit, or the difference between imports and exports, has not decreased despite the considerable drop in gold imports.
The predicted goods trade deficit for the period of April through February 2022–2023 was $247.52 billion, compared to $172.53 billion in the preceding period.
Former GJEPC chairman and managing director of Kama Jewelry Colin Shah said, “India imported about 600 tonnes of gold during April-January 2023, and it is down because of high import duty. The government should take a view on the duty part to help domestic industry and push exports.”
India is the world’s largest importer of gold, mostly meeting the needs of the jewellery sector. In terms of volume the nation yearly imports 800-900 tonnes of gold.
Over the years, it has been noticed that any increase in gold prices reduces demand for the metal along with the sale of old gold. Another issue is the higher tariff, which stimulates the import of gold through illegal channels.
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