India’s Gold Imports Dipped 9% in Apr-Oct ‘19

SEATTLE (Scrap Monster): The recent statistics published by the Indian Commerce Ministry suggests that the country’s gold imports dipped 9% during April to October this fiscal year. The imports during this period totalled $17.63 billion, as compared with $19.4 billion during corresponding period the previous fiscal.

Meantime, the imports recorded growth in the month of October. The monthly gold imports surged higher by 5%. This is the first time since July this year that the monthly imports have increased.

India imports much of its gold to cater to the demand from gems and jewellery industry. The hike in import duty from 10% to 12.5% has resulted in many jewellery manufacturers to shift their base to other countries, where duty structure continues to remain favourable. The Gems and Jewellery Export Promotion Council (GJEPC) has been demanding for reduction of gold import duty since long time. The Council data indicates that gems and jewellery exports fell by almost 2% in April-October this fiscal year.

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Incidentally, the country is the world’s largest importer of gold. The imports by the country range between 800-900 tonnes per annum. The gold imports are a major contributor of its current account deficit (CAD) as well.

The gold prices in the country continued to decline for the fifth day in a row, tracking similar fall in international market. The prices are likely to face further pressure towards end-November, in the absence of any significant triggers.