Gold imports down 74% to $1.75 billion in April

Tags: Gold, News
Gold imports declined over 74% to $1.75 billion in April due to restrictions imposed by the government on inbound shipments of the precious metal to narrow the current account deficit.

Imports of gold in April 2013 stood at $6.78 billion.

In March, the imports of the precious metals were down by 17.27% to $2.75 billion from $3.33 billion in the same month previous year.

Lower imports helped to narrow the trade deficit to $10 billion in the first month of the current fiscal (2014-15).

India's current account deficit (CAD), which is the excess of foreign exchange outflows over inflows, touched a historic high of 4.8% of GDP in 2012-13, mainly due to rising imports of petroleum products and gold.

A high CAD puts pressure on the rupee, which in turn makes imports expensive and fuels inflation.

Finance Minister P Chidambaram recently said the CAD was brought down significantly to $32 billion in 2013-14 as against $88 billion during 2012-13.

The CAD in 2012-13 was at 4.7% of GDP and in 2013-14 it will be only 1.7%, the Finance Minister had said.

The government had increased customs duty on gold to 10% and banned import of gold coins and medallions, while the RBI linked imports of the metal to exports.

India is the largest importer of gold, which is mainly utilised to meet the demand of the jewellery industry.

The Commerce and Industry Ministry is pitching for easing of the gold import restrictions to boost gems and jewellery exports, which declined by eight% in April to $3.27 billion.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sebi must not exempt listed SMEs from its mandatory disclosure norms

    The Securities and Exchange Board of India (Sebi) has amended clause 49 of the listing agreement, which lays down the obligation of companies toward t

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Skills education can boost industry

India’s manufacturing industry matters a great deal for the economic ...

Rajgopal Nidamboor

How synchronous empathy helps us

All of us are in an undulating ‘hypnotic’ state. A ...

Gautam Gupta

In fashion, why quality must exceed quantity

Every time there’s a fashion week in India, my friends, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture