India's Gold import rises up to 6.4 percent

India's gold import rises up to 6.4 percent that stands on the country's Current Account Deficit (CAD) from April-July of 2022.

India's Gold import rises up

According to data shared by the Government, this happened due to healthy demand of the precious metal.

It is worthy to be mentioned that the imports were positioned at USD 12 billion during the same period a year earlier.

Nevertheless, in June, 2022 imports of precious metals fell sharply by 43.6 percent to USD 2.4 billion, as per the latest data released by the commerce ministry.

An increase in gold and oil imports during the first four months of this fiscal contributed to a record trade deficit of USD 30 billion, against USD 10.63 billion in April-July 2021.

India is the world's second-biggest gold consumer after China. The imports mainly take care of the demand from the jewelry industry.

The gems and jewelry exports during the first four months of the current fiscal grew by about 7 percent to USD 13.5 billion.

A wider trade gap during 2021-22 expanded the country's current account deficit at 1.2 percent of GDP against a surplus of 0.9 percent in FY21, according to the Reserve Bank data released in June.

For the January-March 2022 quarter, the CAD narrowed on a sequential basis to USD 13.4 billion or 1.5 percent of GDP against USD 22.2 billion or 2.6 percent of GDP in the October-December 2021 quarter.

A current account deficit took place at a time when the value of goods and services imported and other payments exceeds the value of the export of goods and services and other receipts by a country in a particular period.

What is Current Account Deficit?

A country's current account records the value of exports and imports of both goods and services and international transfers of capital. It is one of the two components of its balance of payments, the other being the capital account. 

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