Gold imports rise 54% to $3.97 billion in April

NEW DELHI: Gold imports increased 54 per cent to $3.97 billion in April, widening the country's trade deficit and fuelling worries about the current account deficit (CAD).

Imports of the precious metal stood at $2.58 billion in April 2018, according to data from the commerce ministry.

Increase in gold imports pushed the country's trade deficit to a five-month high of $15.33 billion in April.

The country's current account deficit (CAD) widened to 2.5 per cent of GDP in the third quarter of the last financial year from 2.1 per cent a year ago, primarily on account of a higher trade deficit, though the foreign exchange reserves continued to soar. CAD is the difference between outflow and inflow of foreign exchange.

After recording a negative growth in imports in February, gold imports started registering double-digit growth. In March, it grew 31 per cent to $3.27 billion.

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.

The imports dipped about 3 per cent in value terms to $32.8 billion during 2018-19.

Meanwhile, Gold prices Monday fell Rs 150 to Rs 32,720 per 10 gram in the national capital due to lacklustre demand from local jewellers amid weak trend overseas, according to the All India Sarafa Association.

Tracking gold, silver also plunged Rs 250 to Rs 37,350 per kg on reduced offtake by industrial units and coin makers.

Sentiments weakened on the back of a subdued global trend, and the fall in demand from local jewellers also put pressure on the precious metal, traders said.