Gold Imports Rise 41% To Rs 22,140 Crore In January

The country's gold imports in January rose by 40.79% to $2.68 billion (approximately Rs 22,140 crore) on account of increasing domestic demands, according to commerce ministry data.

Gold imports stood at $1.9 billion in January 2024.

Cumulatively, imports during April-January this financial year rose 32% to $50 billion against $37.85 billion in the same period last fiscal year.

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 cut in customs duties.

Prices of the yellow metal have increased 11% so far this year to Rs 88,200 per 10 gram in the national capital.

India's gold imports, which have a bearing on the country's current account deficit, surged 30% to $45.54 billion in 2023-24.

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 over 5% of the country's total imports.

The jump in gold imports pushed the country's trade deficit (difference between imports and exports) to $23 billion in January.

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 last month rose by 15.95% year-on-year to about $3 billion.

The country's silver imports in January rose by 82.84% to $883.18 million.