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The enter gold imports pressed the nation’s profession deficiency to a document USD 37.84 billion in November.
Gold imports stood at USD 3.44 billion in November 2023.
Gold Imports In India: The federal government is analyzing if there were any kind of estimation errors in the collection of the gold imports information in November, as the sharp rise pressed the profession deficiency to a document last month, an authorities stated on Wednesday.
Rupee Hits Record Low Against Dollar
The rupee additionally struck a lowest level of 84.91 versus the United States Dollar on December 16.
Trade Deficit Reaches All-Time High in November
The enter gold imports pressed the nation’s profession deficiency (distinction in between imports and exports) to a document USD 37.84 billion in November.
GCIS to Reconcile Gold Import Data
Kolkata- based Directorate General of Commercial Intelligence and Statistics (DGCI&S), under the Ministry of Commerce, is an organisation for the collection, collection and circulation of India’s profession data and industrial info.
“On discovering uncommon rise, DGCIS (Directorate General of Commercial Intelligence and Statistics) has occupied comprehensive evaluation of the gold import information and settlement would certainly be made with the information gotten by CBIC (Central Board of Indirect Taxes and Customs),” news agency PTI quoted an official as saying.
Gold Imports In November 2024
The country’s gold imports in November reached a record high of USD 14.86 billion, registering a four-fold increase, mainly on account of festival and wedding demands.
Gold imports stood at USD 3.44 billion in November 2023.
Year-on-Year Comparison of Gold Imports
Cumulatively, imports during April-November this fiscal rose 49 per cent to USD 49 billion against USD 32.93 billion a year ago.
Gold as a Top-Performing Asset in 2024
According to the ministry, gold, with about 25 per cent average annual return, is one of the best-performing assets in 2024 (till November), and high imports indicate strong investor confidence in the precious metal as a safe asset.
Factors Driving High Gold Imports
The other reasons include asset diversification towards gold due to global uncertainties, increasing demand from banks, and cuts in customs duties.
Prices of the yellow metal have increased 23 per cent so far this year to Rs 78,350 per 10 gm in the national capital.
Impact of Customs Duty Cuts on Gold Imports
In the Budget, the government slashed the duty from 15 per cent to 6 per cent.
India’s gold imports, which have a bearing on the country’s current account deficit (CAD), surged 30 per cent to USD 45.54 billion in 2023-24.
Major Gold Exporting Countries to India
Switzerland is the largest source of gold imports, with about 40 per cent share, followed by the UAE (over 16 per cent) and South Africa (about 10 per cent).
The precious metal accounts for over 5 per cent of the country’s total imports.
India is the world’s second-biggest gold consumer after China. It imports about 800-900 tonnes annually.
Jewellery Industry’s Role in Gold Demand
The imports mainly take care of the demand by the jewellery industry.
Decline in Gems and Jewellery Exports
Gems and jewellery exports last month declined 25.32 per cent year-on-year to USD 17.43 billion.
Current Account Deficit and Gold Imports
The country’s CAD widened marginally to USD 9.7 billion, or 1.1 per cent of the GDP, in April-June 2024 against USD 8.9 billion, or 1 per cent, in the year-ago period.
A current account deficit occurs when the value of goods and services imported and other payments exceed the value of the export of goods and services and other receipts by a country in a particular period.
FTA with UAE Under Review
India is seeking a review of certain provisions of the free trade agreement with the UAE, which came into force on May 1, 2022.
The review assumes significance as experts have raised serious concerns over the spurt in imports of precious metals from the UAE under the trade agreement.
(With PTI inputs)
