Indian Gold Imports Double to $3.80B in December YoY

After recording decline, gold imports more than doubled to $3.80 billion in December, driven by dip in global prices.

In December 2014, gold imports stood at $1.36 billion, according to Commerce Ministry data.

The figure for December 2015 is the highest in the last three months. In August last year, it was $4.95 billion.

The prices have been declining at global as well as domestic markets and higher import impacts the country’s current account deficit (CAD).

The jump in imports has widened the trade deficit to a four month high of $11.66 billion in the month under review.

India is the largest importer of gold in the world, the demand of which mostly comes from the jewellery industry.

During April-December this fiscal, the imports increased to $26.45 billion as against $25.85 billion in the same period last year.

In 2014-15, gold was the third-largest commodity imported to India after crude oil and electronic items. In the respective fiscal, the country’s imports stood at $34.32 billion.

via Business Standard India

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza