India's gold imports, which have a bearing on the country's current account deficit (CAD), rose by 21.78 percent to $27 billion during April-September this fiscal due to strong domestic demand, according to government data.
The imports stood at $22.25 billion in April-September 2023-24.
An industry expert said that the ongoing festival demand is helping the increase in imports.
In 2023-24, India's gold imports surged 30 percent to $45.54 billion.
Switzerland is the largest exporter of gold, with about 40 percent share, followed by the UAE (over 16 percent) and South Africa (about 10 percent).
The precious metal accounts for over 5 percent of the country's total imports.
The jump in gold imports pushed the country's trade deficit (difference between imports and exports) to $137.44 billion during the first half of the current fiscal compared to $119.24 billion during April-September 2023.
India is the world's second-biggest gold consumer after China. The imports mainly take care of the demand by the jewellery industry. These shipments declined by 10.89 percent to $13.91 billion during April-September 2024-25.
The country's CAD widened marginally to $9.7 billion or 1.1 percent of GDP in April-June 2024 against $8.9 billion or 1 percent in the year-ago period.
A current account deficit occurs when the value of goods and services imported and other payments exceeds the value of the export of goods and services and other receipts by a country in a particular period.
Silver imports soared 376.41 percent to $2.3 billion during the first half of this fiscal from $480.65 million in April-September 2023-24, the data showed.
In the Budget, the government slashed the customs duty from 15 percent to 6 percent.
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