Gold Imports Rise 78% to $3.13 Billion in April

New Delhi: Gold imports surged 78.33 per cent year-on-year to $3.13 billion in April on declining prices and easing of restrictions by the Reserve Bank of India (RBI).

Imports of the precious metal stood at $1.75 billion in the same month of 2014.

In March, imports grew 94 per cent to $4.98 billion.

Any increase in gold imports impacts the current account deficit.

The current account deficit in the first half of the last fiscal year declined to 1.9 per cent of GDP ($18 billion) from 3.1 per cent ($27 billion) in the same period of the previous year.

The RBI and the government have maintained that the current account deficit level is comfortable, but the spike in gold imports may spark fresh worries.

On November 28 last year, the RBI had scrapped the controversial 80:20 scheme, which was put in place in August 2013 to put a tight leash on gold inflows. Under the rule, at least 20 per cent of imported gold had to be exported before bringing in new lots.

Increasing gold import is one of the reasons for the widening trade deficit in April, which stood at $11 billion as against $10 billion in April 2014.

India is the largest importer of gold, which mainly caters to the demand of the jewellery industry.