New Delhi: India’s gold imports, which have a bearing on the country’s current account deficit (CAD), surged by 30 per cent to $45.54 billion during 2023-24 due to strong domestic demand, according to government data.

The imports stood at $35 billion in 2022-23. In March this year, however, the imports of the precious metal contracted by 53.56 per cent to $1.53 billion, as per the data released by the Commerce Ministry.

Switzerland is the largest source of gold imports, with about 40 per cent share, followed by UAE (over 16 per cent) and South Africa (about 10 per cent). The precious metal accounts for over 5 per cent of the country’s total imports. At present, there is a 15 per cent import duty on gold. Despite the increase in gold imports, the country’s trade deficit (difference between imports and exports) narrowed to $240.18 billion in the last fiscal as against $265 billion in 2022-23. India is the world’s second-biggest gold consumer after China.

The imports mainly take care of the demand by the jewellery industry. The gems and jewellery exports in 2023-24 dipped by about 14 per cent to $32.7 billion. India’s current account deficit narrowed to $10.5 billion or 1.2 per cent of GDP in the October-December quarter as against $11.4 billion or 1.3 per cent in the preceding three months ending September, according to RBI data.