Gold Imports Decline Over 77% In August

New Delhi: Gold imports fell 77.45 per cent to $1.11 billion in August due to sliding prices of the metal in both global and domestic markets. According to data from the Commerce Ministry, gold imports had stood at $4.95 billion in August last year. The imports of the metal have been declining since February this year. A dip in the imports helps contain the current account deficit.The

contraction helped narrowing the trade deficit to $7.67 billion in August this year as against $12.4 billion in the corresponding period of 2015. The imports mainly take care of demand of the jewellery industry.

For the full year, current account deficit stood at $22.1 billion, 1.1 per cent of GDP, as against $26.8 billion, or 1.3 per cent, in 2014-15.

According to the data, silver imports too dipped to $130.32 million in August as against $363.41 million in the year-ago period.

MMTC-PAMP managing director Rajesh Khosla had stated that falling gold imports may be a great news to the government as it is helping keep current account deficit under check but it seems nobody is bothered about growing smuggling of the yellow metal.

The country's total official gold imports declined to 60 tonnes in April-July of this fiscal year, much lower than 250 tonnes in the year-ago period.

India, the world's second biggest gold consumer after China, imported 650 tonnes in fiscal year 2015-16.