According to data from the commerce ministry, due to uncertainty in the world economy, India’s gold imports, which have an impact on the current account deficit, decreased by 24.15 percent to USD 35 billion in 2022–23.
The value of imports of the yellow metal in 2021–2022 was USD 46.2 billion. Between August 2022 and February of this year, the import growth rate was in the negative range. According to the data, it increased significantly from USD 1 billion in March 2022 to USD 3.3 billion in March 2023.
On the other hand, silver imports rose 6.12per cent to USD 5.29 billion during the previous fiscal year. The country’s trade deficit, or the difference between imports and exports, has not decreased despite the considerable drop in gold imports. The merchandise trade imbalance was projected to be USD 267 billion in 2022–2023, compared to USD 191 billion in the preceding period. Industry experts claim that the decline in gold imports is the result of high import taxes and unpredictability in the global economy.
India imported 600 tonnes of gold between April and January 2023, a lower amount than usual due to hefty import taxes. To assist the home industry and promote exports, the government should take a position on the duty issue, an expert suggested.
India is the world’s largest importer of gold, mostly meeting the needs of the jewellery sector. The nation typically imports 800-900 tonnes of gold.
During 2022–2023, exports of gems and jewellery fell by 3per cent to roughly USD 38 billion. To reduce the current account deficit (CAD), the Centre raised the import tax on gold from 10.75 percent to 15 percent last year.