Gold imports fall 94 per cent on higher prices

New delhi date. Monday, July 20, 2020

During the first quarter of the current financial year 2020- '21, gold imports fell by 9 per cent to ૬૮ 2.8 crore (Rs 2,150 crore) due to the implementation of the lockdown and the skyrocketing prices.

According to informed sources, gold imports are a major contributor to the current account deficit. But this time during the April-June quarter, it has seen a significant decline. If we look at the reason for the decline in gold imports, the demand for gold has come down significantly due to the lockdown that has taken place due to Covid-18.

The implementation of the lockdown has had a serious impact on postponing weddings. On the other hand, following the rally in global markets, gold in the domestic market also rose by Rs. The level of 31,000 has been reached. Thus even because of the high price people avoided buying yellow metal. Thus the demand for gold declined significantly for these two reasons. Exports of diamonds and jewelery fell by 8% to ૨ 2.7 billion from April to June 2020 this year.

The decline in gold and silver imports has helped the country reduce the trade deficit in the first quarter of 2020- '21 and also reduce the gap between imports and exports to ૯ 2.18 billion. During the same period last year, the gap was 4.5 billion. India has recorded a current account surplus of ૬ 0.3 billion for the first time as the trade deficit narrowed. It had a current account deficit of ૪ 4.5 billion or 0.7 per cent of GDP in the same period last year, the commerce ministry said.

It may be mentioned here that gold imports have seen a negative growth since December last year. In March, April, May and June, its imports declined by 7.5 per cent, 7.5 per cent, 7.5 per cent and 7.5 per cent, respectively.

During the same period last year, gold imports stood at 11.5 billion

2.50 crore. Similarly, silver imports fell by 9 per cent to US ૫ 4.5 crore, or Rs 2,500 crore. In terms of volume, the country imports 200 to 300 tonnes of gold a year.