Gold Imports Nearly Triple To $4.47 Billion In March

After registering negative growth, the country's gold imports, which impact Current Account Deficit, jumped by 192.13% to $4.47 billion in March, on account of significant increase in the prices of the yellow metal according to commerce ministry data.

Gold imports stood at $1.53 billion in January 2024. Cumulatively, during April-March 2024-25, the inbound shipments rose 27.27% to $58 billion against $45.54 billion in 2023-24.

The increase in imports also indicates 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, and jump in prices.

On April 17, the gold prices rose by Rs 70 to hit yet another record high of Rs 98,170 per 10 grams in the national capital. The prices soared to record highs due a weaker dollar, escalating trade war tensions, and growing concerns over global economic growth following US President Donald Trump's tariff announcements.

However, silver prices plunged by Rs 1,400 to Rs 98,000 per kg. The white metal had settled at Rs 99,400 per kg in the previous market close.

Silver imports in March contracted by 85.4% to $119.3 million. It was down 11.24% year-on-year in 2024-25 to $4.82 billion.

Switzerland is the largest source of gold imports, with about 40% share, followed by the UAE (over 16%) and South Africa (about 10%). The precious metal accounts for 8% of the country's total imports.

In volume terms, the imports dipped to 757.15 tonnes in 2024-25 against 795.32 tonnes in 2023-24.

The gold imports in February were down by about 62%, while it rose by 40.8% in January and 55.39% in December 2024.

The jump in gold imports pushed the country's trade deficit (difference between imports and exports) to $21.54 in March. It touched an all-time high of $282.82 billion in the last fiscal.

India is the world's second-biggest gold consumer after China. The imports mainly take care of the demand by the jewellery industry.

Gems and jewellery exports during the month rose by 10.62% year-on-year to about $3 billion. It was however dipped by 8.84% to $29.82 billion in 2024-25 from $32.7 billion in 2023-24.

India's CAD inched up to $11.5 billion, or 1.1% of GDP, in the December quarter from $10.4 billion (1.1% of GDP) in the year-ago period, mainly due to higher trade deficit. It widened to $37 billion (1.3% of GDP) during April-December 2024 from $30.6 billion (1.1% of GDP) during the corresponding period of last year.