India's March gold imports skyrocket, exports decline due to shortage
In March, India’s gold imports increased by 584.21% on a year-on-year basis to total $7.17 billion (Rs 47,700.2 crore) due to increased demand but plain gold jewellery exports declined due to a shortage of duty-free gold.
March 2021 saw gold imports for use in the domestic jewellery market skyrocket in March, the Ministry of Commerce and Industry announced in a release, shared by the Gem and Jewellery Export Promotion Council on its website. The Ministry attributed the large increase in gold imports to the approach of the gold-buying festival Akshaya Tritiya; the reduction of gold prices by almost 13% since January this year; and increased wedding jewellery demand among other factors.
However, jewellery businesses manufacturing designs for export are facing a shortage of duty-free gold which has negatively impacted plain gold jewellery export figures. Imports of duty-free gold for export purpose decreased by 81.23% in March. The GJEPC stated that there is not sufficient gold available for the jewellery export sector.
“We request the Government to look into the issues to ensure the hassle-free supply of duty-free gold to exporters by nominated agencies to stem the sharp decline in exports of gold jewellery from India,” said GJEPC chairman Colin Shah, the GJEPC reported on its website.
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