As prices soar, gold imports crash 81%

India's gold imports, which have a bearing on the cur rent account deficit (CAD), plunged 81.22% to USD 2.47 billion (about Rs 18,590 crore) during April-July period of 2020-21 due to a significant f all in demand in the wake of COVID-19 pandemic, according to data from the Commerce Ministry.

Imports of the yellow metal stood at USD 13.16 billion (about Rs 91,440 crore) in the cor responding period of 201920.

Similarly, silver imports during the first four months of the cur rent financial year also dipped 56.5% to USD 685.32 million (about Rs 5,185 crore).

The decline in gold and silver imports has helped in nar rowing the country's trade deficit, dif ference between imports and expor ts, to USD 13.95 billion during April-July 2020-21 as ag ainst USD 59.4 billion in the year-ago period.

Gold imports have been recording a ne g ative g rowth since December last year.

The f all in March, April, May and June was to the tune of 62.6%, 99.93%, 98.4% and 77.5%, respectively.

However, imports g rew marginally by 4.17% to USD 1.78 billion in July as against USD 1.71 billion in the same month last year, the data showed.

India is the largest importer of gold, which mainly caters to demand of jewellery industry. In volume ter ms, the country imports 800-900 tonnes of gold annually.

Gems and jewellery expor ts declined by about 66.36% to USD 4.17 billion in April-July 2020.

India recorded a cur rent account sur plus of USD 0. 6 billion, or 0.1% of GDP, for January-March quarter as against a deficit of USD 4. 6 billion, or 0.7% of GDP, in the year-ago period.