India's gold imports, which have a bearing on the country's current account deficit (CAD), increased 26.7 per cent to $35.95 billion during the April-December of this fiscal due to healthy demand, according to government data. The imports stood at $28.4 billion during the same period a year ago. In December 2023, imports of the precious metal jumped by 156.5 per cent to $3 billion, as per the data released by the commerce ministry.
The decline in gold imports has helped in narrowing the country's trade deficit to $106.84 billion during the eight-month period under review as against $133.74 billion in the year-ago months.
The finance ministry is considering raising import duty on gold by two percentage points to six per cent, as the surge in demand for the yellow metal threatens to further widen India's current account deficit.
Prime Minister's Economic Advisory Council Chairman C Rangarajan dashes bullion firms' duty cut hopes.
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Attributing the high Current Account Deficit to mainly gold import, Chidambaram said the inward shipments of the precious metal resulted in outgo of $50 billion.
Imports are down also because local traders are clearing unaccounted stock after introduction of 1 per cent excise duty
Union Minister Bandi Sanjay Kumar announced India's ambitious plan to rank among the top 10 sporting nations by 2036 and top five by 2047. He highlighted the central government's commitment to sports development through initiatives like Khelo India, increased budget allocation, and a special fund for sports equipment and technology, emphasising sports as a tool for nation-building and youth empowerment.
Union Minister Bandi Sanjay Kumar announced India's ambitious plan to rank among the top 10 sporting nations by 2036 and top five by 2047. He highlighted the central government's commitment to sports development through initiatives like Khelo India, increased budget allocation, and a special fund for sports equipment and technology, emphasising sports as a tool for nation-building and youth empowerment.
Insights from behavioural economics suggest that an ambitious nudge can be effective if three conditions are met, points out Ram Singh Insights from behavioural economics suggest that an ambitious nudge can be effective if three conditions are met, points out Ram Singh, director, Delhi School of Economics.
Import is returning to the normal prevailing three years ago
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Inflow down in December month-on-month; jewellers demand cut in Customs duty rates
The government has revised gold import data, bringing down numbers for November by $5 billion to $9.84 billion, possibly to rectify double accounting of inbound shipments. According to revised data of the commerce ministry arm Directorate General of Commercial Intelligence and Statistics (DGCIS), gold import numbers have been slashed since April 2024, revealing excess imports of about $11.7 billion during the first eight months of 2024-25.
Following through announcements with enforcement of measures is key, as a run through recent Indian economic history shows, points out A K Bhattacharya.
Both the government as well as the RBI took a series of steps to curb imports of gold and other non-essential items in addition to increase foreign exchange inflows.
FIFA's proposal to create a $20 billion subsidiary for the World Cup highlights the intricate balance of power in global football, where the governing body's authority is often challenged by the significant commercial strength of UEFA, particularly in Europe.
Dealers are selling gold at a discount of Rs 175 for 10 gm.
'PM Modi is trying to reduce the volume of fuel consumed instead of raising prices sharply.'
Chidambaram said he expected gold imports to touch $40 billion in the current fiscal year to end-March, down 31 percent from the year-ago bill of $58 billion.
By December 2015, the total imports will touch 1000 tonnes.
Import duty on diamonds may be scrapped
India has protected the interest of domestic farmers and MSMEs by not extending any duty concessions on products across several sectors, including agricultural items such as dairy, as well as chocolates, gold, silver, jewellery, footwear, and sports goods, under the trade pact with Oman.
The Indian central government has reduced its total expenditure by approximately 60,000 crore in FY26, below its revised estimate, to successfully achieve the fiscal deficit target of 4.4 per cent of gross domestic product (GDP), according to the latest data from the Controller General of Accounts (CGA).
Some are eying the competitive markets abroad.
The scheme, touted as a panacea to burgeoning CAD, was a huge flop that fostered a spike in smuggling and allowed several Gitanjali-like players to make a killing
India, desperate to trim a gaping current account deficit, took a slew of measures last year to curb demand for bullion
Govt has so far refused to bring down the import duty to 2% from the current 10%.
The Indian rupee plummeted to a new all-time closing low of 95.81 against the US dollar, driven by surging crude oil prices, persistent inflation concerns, and a strengthening dollar index.
If CAD remains high for 3-4 quarters, central bank may intervene.
However, worries on inadequate import and issues for the FTA pacts.
The Indian government is set to accelerate reforms, including measures to enhance foreign direct investment, speed up divestment, and boost asset monetisation, to maintain economic growth despite rising fuel and fertiliser import costs driven by the West Asia crisis.
This is good news for the central government at a time when crude oil prices are rising.
Gold imports are likely to fall below 50 tonnes this month due to sharp fall in exchange rate of rupee and high global prices of the precious metal, according to market experts.
The Strait of Hormuz crisis is impacting lifestyles worldwide, from reduced gold purchases in India to energy conservation in Europe and Japan, as governments urge citizens to adapt to the global energy shock.
At 12-15 tonnes, the imports in September are estimated to be much lower than in the same month last year.
Gold imports, which peaked at 162 tonnes in May, came down to 19.3 tonnes in November.
Prices have remained lower this year.
'If the war continue for a longer period of time, it is just a matter of time before the government will pass on some of the price increases.'
15% of India's gold this year is likely to be smuggled in or arrive via other unofficial channels to beat a 10% levy imposed by the government
The gold market has remained under pressure.
March was the worst month for gold imports because of a strike by jewellers over the imposition of an excise duty.
