India's imports in September fell to $34.44 billion as gold and silver imports remained at very low levels. For September, the exports rose marginally to $27.68 billion as compared to $26.14 billion in the previous month.
As a result of lower imports and higher exports, trade deficit in September sharply fell to $6.76 billion as compared to $10.91 billion in the previous month, the lowest since March 2011.
Gold and silver imports continued to stay at very low levels in September. Gold and silver imports during the month were at 0.8 billion. The Indian government and the RBI have clamped down on gold imports as the rupee had slipped to record low levels. The government had hiked import duty on gold to 10 percent and the RBI had also linked gold imports to jewellery exports. Imported gold was held up in airports till the government came up with the guidelines. This led to traders hesitant to import more gold.
Gold imports are likely to go up this month ahead of the festive and marriage season. Besides, that the customs authorities have begun to release the imported gold held up in airports after the government came up the final guidelines.
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