Gold demand declines in India due to Corona crisis, 57% drop in imports

Gold Import- India TV Paisa
Photo: PTI Gold Import

New Delhi. Gold imports declined 57 percent to $ 6.8 billion, or Rs 50,658 crore, during the first half (April-September) of the current financial year. This information has been obtained from the data of the Ministry of Commerce. Gold imports have declined due to declining demand amid the Kovid-19 epidemic. It is noteworthy that gold imports affect the country’s current account deficit (CAD). In the same period last fiscal, gold imports stood at $ 15.8 billion or Rs 1,10,259 crore.

Similarly, during April-September, silver imports also fell by 63.4 percent to $ 73.35 million or Rs 5,543 crore. The current account deficit of the country has been reduced due to decrease in gold and silver imports. The difference between import and export is called CAD. CAD declined to $ 23.44 billion in April-September from $ 88.92 billion in the same period last fiscal.

India is one of the world’s largest gold importers. Gold imports here are mainly to meet the demand of the jewelery industry. India imports 800 to 900 tonnes of gold annually. Gems and jewelery exports fell by 55 percent to $ 8.7 billion in the first half of the current financial year.

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