According to official data released Friday, the world’s second biggest importer of gold, India, has increased imports by 6.4% from April to July, taking delivery on more than $12.9 billion of the precious metal. One year ago, over the same period, India imported $12 billion worth of gold.
The imports contributed to a $30 billion trade deficit reported in the first four months of the year, a record amount that was up considerably from the $10.63 billion deficit seen between April and July of 2021.
The Reserve Bank of India had reported an expansion of the country’s Current Account Deficit for 2021-2022 at 1.2% of GDP versus a 0.9% surplus in the previous fiscal year, due to a widening trade gap.
The CAD narrowed in the January-March quarter on a sequential basis to 1.5% of GDP. or $13.4 billion, against the October-December 2021 quarter’s 2.6% of GDP, or $22.2 billion.
India increased the export of gems and jewelry in the first four months of its current fiscal year by almost 7%, to $22.2 billion.
The Daily Financial Trends