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Gold imports drop 10.3% to $1.8 bn in September

Gold imports drop 10.3% to $1.8 bn in September

Gold imports fell 10.3 per cent to USD 1.80 billion in September due to sliding prices of the metal in both global and domestic markets.

According to the data of the commerce ministry, gold imports had stood at USD 2 billion in September last year.

The imports of the metal have been declining since February this year. Dip in the imports help contain the current account deficit (CAD).

The contraction helped narrowing the trade deficit to USD 8.33 billion in September this year as against USD 10.16 billion in the same month of 2015.

The imports mainly take care of demand of jewellery industry.

For the full year, CAD stood at USD 22.1 billion, 1.1 per cent of GDP, as against USD 26.8 billion, 1.3 per cent, in 2014-15.

As per the data, silver imports too went down to USD 139.16 million in September as against USD 484.74 million in the same month last year.

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

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