India Gold Imports Surged Multi-Fold in H1 This Fiscal

SEATTLE (Scrap Monster): The most recent data published by the Indian Commerce Ministry suggests multi-fold jump in gold imports by the country during the initial six-month period of the current fiscal year.

The imports zoomed to hit $24 billion during April to September this year, primarily driven by boosted demand for gold in the country following easing of restrictions in connection with Covid-19 pandemic. It must be noted that the imports had totalled only $6.8 billion during the corresponding period last fiscal. The imports during the month of September this year rose to $5.11 billion. This compares with significantly lower imports of $601.4 million in September 2020.

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The phenomenal jump in gold import volumes led to huge widening of the country’s trade deficit, which stood at $22.6 billion in September this year, compared with $2.96 billion in the same month a year before.

The reduced spending on marriages during the pandemic has led to savings by households, which are now being spent on gold. The fears about an imminent third wave of the pandemic have boosted investments in gold. The anticipated spike in demand during upcoming festive season too has contributed significantly to increased gold imports, said Gems and Jewellery Export Promotion Council (GJEPC).