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Gold imports, which have a bearing on the present account deficit (CAD), plunged 94 per cent to USD 688 million (about ₹5,160 crore) throughout the first quarter of 2020-21 due to a major fall in demand in the wake of the COVID-19 pandemic, in accordance to knowledge from the Commerce Ministry
Imports of the yellow metallic stood at USD 11.5 billion (about ₹86,250 crore) in the corresponding interval of 2019-20.
Similarly, silver imports throughout the quarter too dipped 45 per cent to USD 575 million (about ₹4,300 crore).
The decline in gold and silver imports has helped in narrowing the nation’s commerce deficit, distinction between imports and exports, to USD 9.12 billion throughout April-June 2020-21 in opposition to USD 45.96 billion in the year-ago interval.
Due to narrowing of commerce deficit, India recorded a present account surplus of USD 0.6 billion or 0.1 per cent of GDP for January-March quarter in opposition to a deficit of USD 4.6 billion or 0.7 per cent of GDP in the year-ago interval, the Reserve Bank of India has stated.
Gold imports have been recording a unfavourable development since December final yr. The fall in March, April, May and June was to the tune of 62.6 per cent, 99.93 per cent, 98.Four per cent and 77.5 per cent, respectively
India is the biggest importer of gold, which primarily caters to demand of jewelry business. In quantity phrases, the nation imports 800-900 tonnes of gold yearly.
Gems and jewelry exports declined by about 72 per cent to USD 2.7 billion in April-June 2020.
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