Gold Imports Jump 140% To $4.95 BIllion In Aug

Gold imports more than doubled to USD 4.95 billion in August, driven by dip in global prices and higher domestic demand in view of forthcoming festival season, said the media reports.

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Gold Imports Jump 140% To $4.95 BIllion In Aug

In August 2014, imports stood at USD 2.06 billion.

Higher imports will have adverse bearing on India's current account deficit (CAD).

The growth in gold imports has pushed the country's trade deficit to USD 12.47 billion in August.

India is the largest importer of gold in the world, which mainly caters to the demand of the jewellery industry. Labour intensive gems and jewellery exports in August grew by 2.66 per cent to USD 3.35 billion.

Current account deficit happens when value of import of goods and services is more than that of exports.

The CAD in 2014-15 shrank to 1.3 per cent of GDP (USD 27.5 billion) from 1.7 per cent (USD 32.4 billion) in 2013-14.

At London market, gold prices yesterday fell marginally to USD 1106.63 per ounce ahead of the meeting of US Federal Reserve on interest rates. Silver prices also declined by 0.7 per cent to USD 14.33 per ounce over the last year.

In the national capital, too, gold prices dropped marginally to Rs 26,350 per 10 grams and silver to Rs 34,500 per kg, taking weak cues from the global market.

Read more about: gold, import, export
Story first published: Wednesday, September 16, 2015, 12:20 [IST]
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