India’s gold imports, which have a bearing on the country’s current account deficit (CAD), rose by 33.34 per cent to USD 46.14 billion during the 2021-22 fiscal on account of higher demand. Gold imports were worth USD 34.62 billion in 2020-21. Gold imports in volume terms stood at 842.28 tonnes in April 2021 – February 2022.
India’s current account deficit widened to USD 23 billion or 2.7 per cent of the GDP in the October-December quarter. The current account records the value of exports and imports of goods and services, along with international transfers of capital.
The surge in gold imports during the last financial year contributed to the widening of the trade deficit to USD 192.41 billion, against USD 102.62 billion in 2020-21.
India is the world’s second-biggest gold consumer after China. The imports are largely driven by the jewellery industry. The gems and jewellery exports during 2021-22 grew by about 50 per cent to about USD 39 billion.