STOCK MARKET BSE NSE

Gold, Silver Imports Dip 40% to $33.46 Billion in 2013-14

Published: 11th April 2014 03:57 PM  |   Last Updated: 11th April 2014 03:57 PM   |  A+A-

By PTI

Gold and silver imports declined 40 per cent to USD 33.46 billion in 2013-14 mainly due to restrictions imposed by the government on inbound shipments of the precious metal to narrow the current account deficit.

Imports of gold and silver in 2012-13 stood at USD 55.79 billion.

In March, the imports of the precious metals were down by 17.27 per cent to USD 27.58 billion from USD 33.33 billion in the same month previous year.

Lower imports helped to narrow the trade deficit to USD 138.59 billion in the previous fiscal.

India's current account deficit (CAD), which is the excess of foreign exchange outflows over inflows, touched a historic high of 4.8 per cent of GDP in 2012-13, mainly due to rising imports of petroleum products and gold.

A high CAD puts pressure on the rupee, which in turn makes imports expensive and fuels inflation.

Recently, Finance minister P Chidambaram projected CAD during 2013-14 at about 35 billion, or about 2 per cent of GDP, down from USD 88.2 billion, or 4.8 per cent of GDP, in 2012-13.

The government had increased customs duty on gold to 10 per cent and banned import of gold coins and medallions, while the RBI linked imports of the metal to exports.

India is the largest importer of gold, which is mainly utilised to meet the demand of the jewellery industry. Imports stood at about 830 tonnes in 2012-13.

The Commerce and Industry Ministry is pitching for easing of the gold import restrictions to boost gems and jewellery exports, which declined by 8.82 per cent in 2013-14 to USD 39.52 Billion.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp