Gold Imports Soar 4x To Record High Of $14.86 Bn In Nov

New Delhi: India’s gold imports in November reached a record high of $14.86 billion, registering a four-fold increase, mainly on account of festival and wedding demands, according to Commerce Ministry data. Gold imports stood at $3.44 billion in November 2023. Cumulatively, imports during April-November this fiscal year rose 49 per cent to $49 billion as against $32.93 billion in the same period last fiscal year. According to the ministry, gold, with about 25 per cent average annual return, is one of the best-performing assets in 2024 (till November) and high imports indicate strong investor confidence in the precious metal as a safe asset.

The other reasons include asset diversification towards gold due to global uncertainties, increasing demand from banks, cut in customs duties. Prices of the yellow metal have increased 23 per cent so far this year to Rs78,350 per 10 gm in the national capital.

In the Budget, the government slashed the duty from 15 per cent to 6 per cent. India’s gold imports, which have a bearing on the country’s current account deficit (CAD), surged 30 per cent to $45.54 billion in 2023-24. Switzerland is the largest source of gold imports, with about 40 per cent share, followed by the 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.

The jump in gold imports pushed the country’s trade deficit (difference between imports and exports) to a record $37.84 billion in November. India is the world’s second-biggest gold consumer after China. The imports mainly take care of the demand by the jewellery industry.