BUSINESS

Gold imports rise by 94% to $4.98 bn in March

Source:PTI
April 17, 2015 21:20 IST

Gold imports surged by 93.86 per cent year-on-year to $4.98 billion in March due to declining prices and easing of restrictions by the RBI.

Imports of the precious metal stood at $2.57 billion in the same month in 2014.

In February, imports grew 48.78 per cent to $1.98 billion.

Any increase in gold imports, in turn, impacts the current account deficit (CAD).

The CAD in the first half of this fiscal declined to 1.9 per cent of GDP ($18 billion) from 3.1 per cent ($27 billion) in the same period of the previous year.

The Reserve Bank and the government have maintained that the CAD level is comfortable, but the spike in gold imports may spark fresh worries.

On November 28 last year, the RBI had scrapped the controversial 80:20 scheme.

Under the programme, which was put in place in August 2013 to put a tight leash on gold inflows, at least 20 per cent of the imported gold had to be exported before bringing in new lots.

Increasing gold import is one of the reasons for the widening trade deficit in March, which stood at $11.79 billion, a 4-month high. India is the largest importer of gold, which mainly caters to the demand of the jewellery industry. 

Source: PTI
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