India’s gold imports decrease in April to October period

By

Isabelle Crossley

Published
Nov 26, 2019

Gold imports to India decreased by 9% year-on-year in the April to October period and gem and jewellery exports decreased by around 2% in the same time period.

India, the world’s largest gold importer, saw imports of the precious metal decrease to $17.63 billion (Rs 1.25 lakh crore) in the April to October period this year compared to $19.4 billion during the same time period the year before, the Ministry of Commerce said. The decrease in gold imports has contributed to narrowing India’s trade deficit to $94.72 billion in the April to October period compared to a trade deficit of $116.15 billion in the same time period the year before, the Press Trust of India reported. 

Although gold imports were decreasing since July 2019, imports increased by around 5% in October. The Union Government decided to increase import duty on gold from 10% to 12.5% shortly after it was reelected in its budget for the year. The Gem and Jewellery Export Promotion Council was unhappy with this decision and asked the government to reduce the rate to 4% to aid the Indian jewellery industry which is currently experiencing a slowdown. 

Exports of gems and jewellery were down by around 2% from April to October and totalled $18.3 billion despite a number of government initiatives to increase exports such as “Make in India” and “Skill India”.