NEW DELHI: India’s gold importswhich have a bearing on the country’s current account deficit (CAD), rose 6.4 percent to $12.9 billion during April-July this fiscal due to healthy demand, according to government data.
The imports stood at $12 billion during the same period a year ago.
In July 2022, however, imports of the precious metal fell sharply by 43.6 percent to $2.4 billion, as per the latest data released by the commerce ministry.
Increase in gold and oil imports during the first four months of this fiscal contributed to a record trade deficit of $30 billion, against $10.63 billion in April-July 2021.
India is the world’s second-biggest gold consumer after China. The imports mainly take care of the demand by the jewelery industry.
The gems and jewelery exports during the first four months of the current fiscal grew by about 7 percent to $13.5 billion.
A wider trade gap during 2021-22 expanded the country’s current account deficit at 1.2 per cent of GDP against a surplus of 0.9 per cent in FY21, according to the Reserve Bank data released in June.
For the January-March 2022 quarter, the CAD narrowed on a sequential basis to $13.4 billion or 1.5 per cent of GDP against $22.2 billion or 2.6 per cent of GDP in the October-December 2021 quarter.
Current account deficit occurs when the value of goods and services imported and other payments exceeds the value of exports of goods and services and other receipts by a country in a particular period.