Gold imports jump multi-fold to $6.91 bn

Gold imports, which have a bearing on the current account deficit, zoomed to $6.91 billion (Rs 51,438.82 crore) during April-May 2021 due to low base effect in the wake of the Covid-19 pandemic, according to data from the Commerce Ministry.

Imports of the yellow metal had plunged to $79.14 million (Rs 599 crore) in the corresponding period last year, the data showed. Silver imports, however, dipped by 93.7 per cent to $27.56 million.

Significant jump in the gold imports has led to widening of the country's trade deficit, difference between imports and exports, to $21.38 billion during April-May this fiscal as against $9.91 billion in the year-ago period. India is the largest importer of gold, which mainly caters to the demand of jewellery industry. In volume terms, the country imports 800-900 tonnes of gold annually. Gems and jewellery exports increased to $6.34 billion during the first two months of the current fiscal as against $1.1 billion in the same period previous year.