New Delhi. In the last financial year 2020-21, gold imports increased by 22.58 percent to reach $ 34.6 billion or 2.54 lakh crore rupees. Gold imports affect the current account deficit. Gold imports have increased as domestic demand has increased. On the other hand, silver imports declined by 71 per cent to $ 791 million during the financial year. In the previous financial year 2019-20, gold imports stood at $ 28.23 billion. Despite an increase in gold imports, the country’s trade deficit narrowed to $ 98.56 billion in the last financial year.
India is the largest gold importer.
India is the world’s largest importer of gold. Gold is mainly imported to meet the demand of the jewelery industry. Gems and jewelery exports fell 27.5 percent to $ 26 billion in the last fiscal year. India imports 800 to 900 tonnes of gold every year by volume.
Gold at an altitude of more than 1 month-
Gold prices have touched a high of more than a month due to rising inflation in the Indian economy as well as rising fears of inflation. Gold futures on MCX rose by 035 per cent, or Rs 162, to Rs 46,770 per 10 grams. Silver futures rose by Rs 137 to Rs 67,775 per kg.
Gold import increases due to increase in domestic demand-
Gemin & Jewelery Export Promotion Council chairman Colin Shah said that gold imports are increasing due to increasing domestic demand. Shah said that due to Akshaya Tritiya and marriage-interest season, gold imports could increase further. This will also increase the current account deficit. The difference between foreign exchange coming in and going out of the country is called CAD.