India Gold Imports Skyrocketed 470% in March 2021

SEATTLE (Scrap Monster): According to government sources, India’s gold imports skyrocketed by 471% in the month of March this year. The imports by the world’s second biggest gold consumer spiked, mainly on account of boosted consumer demand for the yellow metal.

The monthly gold imports by the country totalled 160 tons in March 2021. The cumulative gold imports by the country totalled 321 tons in the initial three-month period of the current year. This is significantly higher when compared with the imports of 124 tons in the corresponding quarterly period a year before. In value terms, the imports totalled $8.4 billion, compared with $1.23 billion during Jan-Mar ’20.

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The spike in official gold imports is partly attributed to the recent government decision to slash import duty on gold from 12.5% to 10.75%. The move has also resulted in curtailment of flow of gold through unofficial channels. The correction in gold prices from their peak saw increased demand for gold from jewellers as well as retail customers, which also led to increased gold imports.

Throughout March this year, gold traded at a premium, indicating the high demand. Meantime, imports are expected to fall below 100 tons in April.