In the last financial year 2020-21, gold imports increased by 22.58 percent to reach $ 34.6 billion or Rs 2.54 lakh crore. Gold imports affect the current account deficit (CAD). According to the Commerce Ministry data, gold imports have increased due to increasing domestic demand. According to the data, silver imports declined by 71 percent to $ 791 million during the financial year.
In the previous financial year 2019-20, gold imports stood at $ 28.23 billion. Despite the increase in gold imports, the trade deficit of the country decreased to $ 98.56 billion in the last financial year. It was $ 161.3 billion in 2019-20.
Gem and Jewelery Export Promotion Council (GJEPC) chairman Colin Shah said that gold imports are increasing due to increasing domestic demand. Shah said that due to Akshaya Tritiya and marriage season, the import of gold can increase further. This will also increase the current account deficit. The difference between foreign currency coming into the country and going out of here is called CAD.
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Let us tell you that India is the world’s largest importer of gold. Gold is mainly imported to meet the demand of the jewelery industry. Gems and jewelery exports fell 27.5 percent to $ 26 billion in the last financial year.
India imports 800 to 900 tonnes of gold every year depending on the quantity. The government has reduced the import duty on gold from 12.5 percent to 10 percent in the budget.