InvestorQ : Is it true that gold imports have gone up sharply in the current financial year?
vaishnavi mhatre made post

Is it true that gold imports have gone up sharply in the current financial year?

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vidhya Laxmi answered.
2 months ago
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That is the latest macro challenge for the Commerce Ministry as these gold imports are widening the trade deficit. If you look at the first six months of FY22, then gold imports surged to a level of $24 billion. This is nearly 4 times the total gold imports of $6.8 billion in first half of FY21. India imported gold to the tune of $5.11 billion in the month of Sep-21 alone as lower gold prices incentivized buyers to stock up on gold.

There is one big macro risk as jewellers stock up on hold ahead of the festive season. There has also been a worry that gold prices could go up globally on geopolitical and economic uncertainty. This has resulted in the merchandise trade deficit for the month of Sep-21 widening to a record level of $22.6 billion. India is the world’s largest importer of gold and imports 900 tonnes annually. It uses up precious forex for an unproductive asset.

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