India’s gold imports increase by 35.5% in Q1

India saw its gold imports increase by 35.5% in the first quarter of the 2020 financial year ending June, compared to the same time period a year ago, which pushed up the country’s trade deficit.

India’s gold imports have been on the rise almost consistently since the start of the year - World Gold Council-Facebook

India, the world’s largest gold importer, reported gold imports totalling $11.45 billion (Rs 76,173 crore) for the first quarter of the 2020 financial year, a 35.5% increase compared to the first quarter of the 2019 financial year when gold imports totalled $8.45 billion, according to official data accessed by ET Bureau. 

The increase in gold imports also contributed to raising India’s total trade deficit to reach $45.96 billion for the quarter compared to $44.94 billion for the same time period a year ago. The government’s rhetoric is focusing on reducing the trade deficit by increasing domestic production with its 'Make in India' campaign. 

The government is trying to tackle its high level of gold imports with raised import duties. In the Union Government’s latest budget, released in July just after the party’s re-election, gold import duty was set at 12.5% up from 10% previously. However, this was met with criticism from the Indian jewellery industry and several trade bodies.

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