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Gold imports down by 48.49 percent in December
Posted on: 18/Jan/2017 10:09:12 AM
The gold imports during the month of December was down by 48.49 percent and was worth US Dollars 196 Crores. The perceptible reason suggested for this drastic reduction is the cash crunch following the demonetization.
It is worth comparing this figure with the corresponding figure of gold imports in the month of December 2015 – it was worth US Dollars 380 Crores. There was a gradually decreasing trend in the imports of gold from February 2016 to September 2016. There was an increase during the subsequent months of October and November. However, during the month of December, mainly due to the shortage of cash, gold imports came down.
Due to this fall in gold imports, there is a trade deficit of US Dollars 1036 Crores. The comparative figure for December 2015 was US Dollars 1150 Crores. The fall in gold imports helps reduce the trade deficit.
In a similar vein, the silver import during the month of December has come down by 81.55 percent and was worth US Dollars 8.7 Crores. It is worth comparing with the corresponding figure of December 2015 which was US Dollars 47.2 Crores.
During this current financial year, gold imports have come down to 60 tons during the period from April to July. India is the second country after China, which has largest consumer base for gold. It is notable that during the financial year 2015-16, the gold imports in India was 650 tons.
