Overall, imports rose 32 percent to USD 50 billion from April to January this fiscal, as against USD 37.85 billion in the same period last fiscal. The rise in imports also reflects strong investor confidence in the precious metal as a safe-haven asset.
Additional factors include asset diversification in gold amid global uncertainties, rising demand from banks and reduction in customs duty. The price of the yellow metal has risen 11 percent this year, reaching Rs 88,200 for every 10 grams in the national capital.
India’s gold imports, impacting the country’s current account deficit (CAD), rose 30 percent to USD 45.54 billion in 2023-24. Switzerland is the primary source of gold imports, accounting for nearly 40 percent, followed by the UAE at 16 percent and South Africa at nearly 10 percent. The precious metal represents more than 5 percent of the country’s total imports.
The country’s trade deficit (difference between imports and exports) widened to USD 23 billion in January due to a rise in gold imports.
India is the second-largest gold consumer globally after China. Imports mainly meet the needs of the jewellery sector.
Last month, exports of gems and jewellery rose 15.95 percent over the previous year to nearly USD 3 billion.
In January, silver imports into the country rose 82.84 percent to USD 883.18 million.
