The decline in gold and silver imports has helped in narrowing the countrys trade deficit, the difference between imports and exports, at USD 23.44 billion during April-September 2020-21 as against USD 88.92 billion in the year-ago period. India is the largest importer of gold, which mainly caters to the demand of the jewellery industry. In volume terms, the country imports 800-900 tonnes of gold annually.
Gold imports have plunged 57 percent to around Rs 50,658 crore during the first half of this fiscal amid a slump in demand due to the COVID-19 pandemic. In the corresponding period a year ago, gold imports stood at about Rs 1,10,259 crore. Similarly, silver imports during April-September 2020 too dipped 63.4 percent to about Rs 5,543 crore. The decline in gold and silver imports has helped in narrowing the trade deficit, the difference between imports and exports.