India’s Gold Imports Witness 24% Decline To $35 Billion In 2022-23

India's gold imports, which have a bearing on the current account deficit, witnessed a dip of 24.15% to USD 35 billion in 2022-23 amid global economic worries, data from the commerce ministry showed. Imports of the precious metal stood at USD 46.2 billion in 2021-22.

The growth rate in the imports was in the negative zone during August 2022 to February this year. It jumped to USD 3.3 billion in March 2023 as against USD 1 billion in the year-ago month, according to a PTI report.

In India, price of 22K gold is Rs 56,490 per 10 gram after a marginal decline of Rs 10 and price of 24K gold is quoted at Rs 61,630 per 10 gram after similar decline by Rs 10. Price of gold witnessed sharp decline of Rs 700 on May 6, 2023 for 22K and price of 24K gold fell by Rs 760.

Silver imports, however, rose 6.12 per cent to USD 5.29 billion during the last fiscal. The significant fall in gold imports though has not helped in narrowing the country's trade deficit - the difference between imports and exports. The merchandise trade deficit in 2022-23 was estimated at USD 267 billion against USD 191 billion in the year-ago period.

According to industry experts, high import duty on gold and global economic uncertainties have led to the dip in imports of the precious metal, reported PTI.

"India imported about 600 tonnes of gold during April-January 2023, and it is down because of high import duty. The government should take a view on the duty part to help the domestic industry and push exports," an expert said.

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, stated the PTI report.

Gems and jewellery exports declined by 3 per cent to about USD 38 billion during 2022-23.

Last year, the Centre hiked gold import duty to 15 per cent from 10.75 per cent to check the current account deficit (CAD), added the PTI report.