India's Gold and Jewellery Imports Boom Contributing to Trade Deficit in August

by GoNews Desk Sep 08, 2021 • 03:20 PM Views 1327

India’s gold imports have increased 82% in August and are the highest since five months at 121 tonnes compared to 63 tonnes imported in August 2020. According to an official release,  gold imports this year jumped to $6.7 billion compared to $3.7 billion last year. A fall in global gold prices and the upcoming festive and wedding season has spurred the imports to meet the increased demand. At the same time the imports of Gems, Pearls and Jewellery also increased 92% in the month indicating that the country is getting ready for a blockbuster wedding season. Retailers have observed that consumer activity increased since the easing of lockdown restrictions after the second wave of Covid infections.

The gold price in August 2020 was ₹4902.62/gram which came down to ₹4132.58/gram in August 2021. Until August 2021, India had imported 687 tonnes of gold, which was triple of what it had imported last year.