India Gold Imports Surged 33% During Previous Fiscal

SEATTLE (Scrap Monster): As per the latest official data, the India gold imports rose significantly by almost one-third during fiscal 2021-’22, driven by higher gold demand across the country. The imports were valued at $46.14 billion, compared to gold imports which were valued at $34.62 billion in 2020-’21.

The surge in gold imports has resulted in further widening of the country’s Current Account Deficit (CAD). The trade deficit expanded to $192.41 billion, as against $102.62 billion recorded in 2020-’21. Meantime, the gold import volumes stood at 842.28 tonnes in April 2021-Febraury 2022, official data said.

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The gold imports were largely driven by heightened demand from the gems and jewellery industry. The exports of gems and jewellery from the country witnessed significant uptick, registering a growth of around 50% to total $39 billion. The domestic retail demand for the yellow metal too remained strong during the fiscal. Incidentally, India is the world’s second largest consumer of gold after China.

Meantime, discounts of physical gold in India widened as demand witnessed only slight improvement. The dealers were seen offering discounts of up to $40 per ounce over official domestic prices, including the 10.75% import duty and 3% GST. This is up from last week’s discount of $35 per ounce.