Gold imports in the first half of fiscal year 2017-18 reached $ 16.95 billion

During the first six months of FY 18-18, the country's gold imports grew by more than 200% and reached a value of $ 16.95 billion. During the first half of the financial year 2016-17-17, the imports were $ 6.98 billion, this figure has been taken from the Ministry of Commerce.

In September this year, gold imports fell by 5%, from $ 1.80 billion to $ 1.71 billion compared to the same month last year. Last month, the decline in gold imports has reduced the country's trade deficit to $ 8.98 billion, which is a seven-month low level.

As the festival season has started this month, it is expected that the import of gold will increase. Due to the increase in gold imports, the country's current account deficit (CAD) has widened. CAD has reached $ 14.3 billion, which is 2.4% of GDP during April-June 2017.

The country has a free trade agreement with the shipment coming from South Korea and the Indian government has limited the import of gold because it was concerned about the increase.

After China, the world's second largest gold consumer is India, mainly to meet the demand of jewellery industry, gold is imported. At present, gold import duty is charged with 10% fee. To reduce duty on precious metals, gems and jewellery industry are requesting the finance ministry.