Gold imports increased amidst strong demand, reached $ 13 billion: Imports of gold increased by 6.4 percent to $12.9 billion during the period between April and July of the current fiscal year. This increase in gold exports can be attributed in part to the high demand on the domestic market. A total of $12 billion worth of gold was imported in the exact period in the previous year. However, gold imports decreased 43.6 percent from $2.4 billion in July of this year. The information was provided in the most recent data published by the Commerce Ministry.
The importation of oil and gold boosted the trade gap in India. The rise in imports of oil and gold in the initial quarter of the current fiscal year has resulted in the largest trade deficit in history which was $30 billion. The trade deficit was at $10.63 billion during the same time frame of FY 2021. India is the second-largest gold importer after China. The gold imports are mostly used to meet the needs for jewelry production.
Exports of gems and jewelry were $13.5 billion
In the initial 4 months of this fiscal year Gems & Jewelry, exports grew by 7 percent, reaching $13.5 billion. According to the data published from the Reserve Bank in June, the deficit in the current account of the country increased to 1.2 percent of GDP in FY21-22. This was up from an excess of 0.9 percent in FY21 due to a huge trade gap. The current account balance was at $13.4 billion in the January-March 2022 period and $22.2 billion in the November-December 2021 quarter.