CHENNAI: India’s gold imports are likely to drop by 18 per cent in 2018 from last year due to rising prices of the bullion and a falling rupee have dampened demand from gold retailers, a Reuters poll revealed.
Gold imports by the world’s second largest buyer stood at Rs 803.25 crores in the financial year 2017-2018, according to data by the Department of Commerce, GOI.
“Over the last two months, the domestic gold prices have been comparatively higher than the international prices. This is due to two major reasons – the weak Indian rupee and a firm equity market in the country,” said Hareesh V, head of commodity research, Geojit Financial Services.
“However, if the gold imports are expected to be down this year, it comes only as a relief to the country. Gold imports are one of the major reasons for the current account deficit of India to be high. If there are fewer gold imports than last year, it definitely bodes well for the economy,” he added.