India's gold imports, which have a bearing on the country's current account deficit, surged by 30% 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% to $1.53 billion, as per the data released by the commerce ministry.
Switzerland is the largest source of gold imports, with about 40% share, followed by UAE (over 16%) and South Africa (about 10%).
The precious metal accounts for over 5% of the country's total imports.
At present, there is a 15% 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% to $32.7 billion.
India's current account deficit narrowed to $10.5 billion or 1.2% of GDP in the October-December quarter as against $11.4 billion or 1.3% in the preceding three months ending September, according to RBI data released on March 26.
During April-December 2023-24, CAD has moderated to 1.2% of GDP from 2.6% of GDP in the corresponding period a year ago on the back of a lower merchandise trade deficit.
A current account deficit occurs when the value of goods and services imported and other payments exceeds the value of the export of goods and services and other receipts by a country in a particular period.
As per the ministry data, silver imports increased by 2.72% to $5.4 billion in 2023-24.
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