New Delhi: India's gold imports shot up by about 61 per cent to 155 tonnes in the first two months of the current fiscal mainly due to weak prices globally and the easing of restrictions by the Reserve Bank. In April-May of the last fiscal, gold imports had aggregated about 96 tonnes, an official said. In the international market, gold has been trading weak over the past few months.
On Friday, it closed at USD 1,095.10 in New York market. India is the largest importer of gold, which mainly caters to the demand of the jewellery industry. Large imports of gold impact the country's current account deficit, which occurs when value of import of goods and services is more than its exports. The CAD in 2014-15 shrank to 1.3 per cent of GDP (USD 27.5 billion) from 1.7 per cent (USD 32.4 billion) in 2013-14.
The Reserve Bank and the government have maintained that the CAD level is comfortable. In November last year, RBI had scrapped the controversial 80:20 scheme. Under the programme, which was put in place in August 2013 to keep a tight leash on gold inflows, at least 20 per cent of imported gold had to be exported before bringing in new lots. In 2014-15, India imported 915.54 tonnes of gold as against 661.71 tonnes in the previous financial year.
