India Gold Imports Hit Lowest Monthly Level in Nearly a Decade

SEATTLE (Scrap Monster):  The gold imports by India hit the lowest monthly level in at least a decade following lack of demand due to extended national lockdown imposed by the country’s government to curb spread of coronavirus pandemic.

In accordance with provisional data published by the Ministry of Finance, the monthly imports of the yellow metal plunged to 60 kilograms during the month of April this year. This translates to a decline of almost 99.5% when matched with the prior month imports. The country’s gold imports had totalled 13 tons in March this year. The monthly inward shipments hit the lowest level since 2010.

N. Anantha Padmanaban, chairman of the All India Gem and Jewellery Domestic Council stated that ongoing disruption of air transport has resulted in negligible imports in April, as the country imports most of its gold by air. The current trends indicate that the yearly imports may likely halve to around 350 tons in 2020.

The trade expects no major recovery in demand or import volumes for at least next three to five months. The jewellery sector manufacturing activity may remain subdued due to severe shortage of skilled workers. The projected economic slowdown in the country may limit fresh gold purchases. As per latest estimates, the country’s GDP is feared to dip by almost one-fourth in the second quarter of the current year.

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