Gold imports up 19% at $34 bn in FY15

Gold imports up 19% at $34 bn in FY15
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Gold imports up 19% at $34 bn in FY15. Gold imports surged 19.5 per cent to $34.32 billion in fiscal year 2014-15 due to declining prices and easing of restrictions by the Reserve Bank of India. Imports of the metal were $28.7 billion the previous fiscal year (2013-14).

New Delhi: Gold imports surged 19.5 per cent to $34.32 billion in fiscal year 2014-15 due to declining prices and easing of restrictions by the Reserve Bank of India. Imports of the metal were $28.7 billion the previous fiscal year (2013-14).

Increase in gold imports impacts the country's trade deficit, which has reached $137 billion in 2014-15, and the current account deficit. The imports almost doubled in March to $4.98 billion which pushed the trade deficit to a four-month high of $11.79 billion for the month, data from the Commerce Ministry showed.

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

It has narrowed to 1.7 per cent for the first nine months of the previous fiscal year. According to the RBI data, in the April-December period of last fiscal year, current account deficit stood at $31.1 billion or 2.3 per cent of GDP.

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