India is the world's second-biggest gold consumer after China. The imports mainly take care of the demand by the jewellery industry.
India's gold imports, which have a bearing on the country's current account deficit (CAD), rushed by about 73% to USD 45.1 billion during April-February this fiscal year on account of higher demand, according to an official data.
The imports stood at USD 26.11 billion in April-February 2021.
In February 2022, however, imports of the expensive metal dipped by 11.45% to USD 4.7 billion, as per the data given by the commerce ministry.
The flow in gold imports during the 11-month period contributed to the broadening of the trade deficit to USD 176 billion, against USD 89 billion in April-February 2021.
The gems and jewellery exports during the first nine months of the current fiscal grew by 57.5% to USD 35.25 billion.
India's current account slipped into a deficit of USD 9.6 billion or 1.3% of GDP in the September quarter, according to the Reserve Bank.
The current account, which records the value of exports and imports of goods and services, along with international transfers of capital, was in surplus both in the quarter-ago and year-ago periods.
Commenting on rising gold imports, Gem and Jewellery Export Promotion Council (GJEPC) Chairman Colin Shah said that monthly average imports of gold during April-February 2022 are still at 76.57 tonnes, which is relatively lower than the usual level.
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