Gold imports jump multi-fold to $7.9 bn

Gold imports, which have a bearing on India's current account deficit (CAD), jumped multi-fold to $7.9 billion (Rs 58,572.99 crore) during the April-June 2021 quarter due to low base effect in the wake of the Covid-19 pandemic, according to data from the Union Commerce Ministry. Imports of the yellow metal had plunged to $688 million (Rs 5,208.41 crore) in the corresponding period last year, the data showed. Silver imports, however, dipped by 93.7 per cent to $39.4 million. Significant increase in the gold imports has led to widening of the country's trade deficit, difference between imports and exports, to about $31 billion during April-June this fiscal. India is the largest importer of gold, which mainly caters to the demand of the jewellery industry. In volume terms, the country imports 800-900 tonnes of gold annually. Gems and jewellery exports increased to $9.1 billion during the first three months of the current fiscal as against $2.7 billion in the same period previous year.