SEATTLE (Scrap Monster): The World Gold Council (WGC) has published a new report highlighting the bullion import trends in India during the past five years. The imports of the yellow metal accounted for 86% of the total gold supply in the country over the past five years from 2016 to 2021. Recycling made up 13%, whereas mining accounted for only 1% of the supply, said the report.
The world’s second largest consumer of gold had initiated efforts to curb gold imports in 2012, including the 80:20 rule, by which 20% of all gold imported had to be exported as jewellery. Although the rule was revoked in end-2014, the government continued to keep the gold import rate high at 10%. Furthermore, the import duty was raised to 12.5% in July 2019. In the most recent budget in 2021, the total import duty on gold bars was reduced, WGC report said.
Since the first hike in duty on gold imports in 2012, the country has imported around 6,581t of gold, averaging at 730t per year. Also, dore imports made up nearly 30% of total imports during the past five years. Over the period from 2015 to 2020, Switzerland emerged as the largest gold exporter to India.
The 2020 data suggests that 84% of the official imports came through airports located in North and South India.