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Gold imports rise 54% to $ 3.97 billion in April

May 20, 2019 16:56 IST

Increase in gold imports pushed the country's trade deficit to a five-month high of $ 15.33 billion in April.

Gold imports increased 54 per cent to $ 3.97 billion in April, widening the country's trade deficit and fuelling worries about the current account deficit (CAD).

Imports of the precious metal stood at $ 2.58 billion in April 2018, according to data from the commerce ministry.

 

Increase in gold imports pushed the country's trade deficit to a five-month high of $ 15.33 billion in April.

The country's current account deficit (CAD) widened to 2.5 per cent of GDP in the third quarter of the last financial year from 2.1 per cent a year ago, primarily on account of a higher trade deficit, though the foreign exchange reserves continued to soar.

CAD is the difference between outflow and inflow of foreign exchange.

After recording a negative growth in imports in February, gold imports started registering double-digit growth. In March, it grew 31 per cent to $ 3.27 billion.

India is the largest importer of gold, which mainly caters to the demand of the jewellery industry.

In volume terms, the country imports 800-900 tonnes of gold annually.

The imports dipped about 3 per cent in value terms to $ 32.8 billion during 2018-19.

Photograph: Photograph: Leonhard Foeger/Reuters

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