Between April and February 2023, imports of gold decline 30% to $31.8 billion

According to data from the nation’s commerce ministry, India’s gold imports decreased by about 30% to $31.8 billion during April to February 2023 compared to the same period in the previous year.

According to data from the nation’s commerce ministry, India’s gold imports decreased by about 30% to $31.8 billion during April to February 2023 compared to the same period in the previous year. The decline in gold imports is attributed to a number of things, including high customs duties and unpredictability in the world economy.

Read Also:- Appasaheb Dharmadhikari will receive the “Maharashtra Bhushan” from Amit Shah.

Gold imports in India and the country’s trade deficit:

The reduction in India’s gold imports by approximately 30% to $31.8 billion during April-February 2023 has not helped to reduce the country’s trade deficit, which was estimated at $247.52 billion for the same period, compared to $172.53 billion the previous year. The Indian economy, which is heavily reliant on imports of goods and services, is concerned about the negative trade balance.

Reason for decrease in imports of gold:

Industry experts blame high import taxes and unpredictability in the global economy for the decline in gold imports. In order to decrease the nation’s reliance on imported gold and allay worries about the current account deficit, the Indian government raised the customs duty on gold imports. However, this has increased the cost of importing gold, which has decreased interest in the yellow metal.

India’s Silver Imports: On the other hand, from April through February 2023, silver imports increased by 66% to $5.3 billion. The rise in silver imports is attributed to the metal’s rising demand for industrial uses, such as batteries, solar panels, and electronics.

The demand for gold in India is primarily met by the jewellery industry, making it the country with the largest imports of the metal. Volume-wise, the nation imports 800-900 tonnes of gold each year. The decrease in gold imports has also had an impact on the gem and jewellery sector, with exports falling by 0.3% to USD 35.2 billion over the course of the last fiscal year’s first 11 months.

In order to reduce the current account deficit (CAD), the government raised the import duty on gold from 10.75% to 15%. While this action may have reduced the CAD, it also had an effect on the demand for gold and the exports of the jewellery sector. In order to increase exports and support the domestic industry, experts have called for a review of the high import duty. The government might have to find a balance between lowering the CAD and encouraging exports and economic expansion.