NEW DELHI: The country’s gold imports grew 221.41% in August, driven by high festive demand and a reduction in import duty in the budget, reaching USD 10.06 billion, according to the commerce ministry’s data released on Tuesday.
The import of the yellow metal was at USD 4.9 billion in the same month last year. This reflects growing consumer demand for gold ahead of the country’s festive season, where gold plays an important role in cultural and religious celebrations.
Commerce secretary Sunil Barthwal said the demand for gold is also influenced by a reduction in import duties announced in the budget, as well as jewellers preparing for the upcoming festive season.
Finance minister Nirmala Sitharaman in the budget 2024-25 had reduced the total customs duty on gold from 15% to 6%, and on gold doré from 14.35% to 5.35%. This is the largest cut ever and the lowest duty rate since June 2013.