High import duty shrinks gold imports
Gold imports fell 24% to $35bn, while silver imports rose 6.12% to $5.29bn; Centre in 2022 hiked gold import duty
New Delhi: India’s gold imports, which have a bearing on the current account deficit (CAD), dipped 24.15 per cent to $35 billion in 2022-23 due to global economic uncertainties, according to data from the commerce ministry. Imports of the yellow metal stood at $46.2 billion in 2021-22. The growth rate in the imports was in the negative zone during August 2022 to February this year.
It jumped to $3.3 billion in March 2023 as against $1 billion in the year-ago month, the data showed. Silver imports, however, rose 6.12 per cent to $5.29 billion during the last fiscal. The significant fall in gold imports though has not helped in narrowing the country’s trade deficit -- the difference between imports and exports. The merchandise trade deficit in 2022-23 was estimated at $267 billion against $191 billion in the year-ago period.
According to industry experts, high import duty on gold and global economic uncertainties has led to the dip in imports of the precious metal.
