New Delhi : Gold imports surged 19.5 per cent to reach USD 34.32 billion in 2014-15 due to declining prices and easing of restrictions by the Reserve Bank. Imports of the metal were USD 28.7 billion the previous fiscal, 2013-14. Increase in gold imports impacts the country’s trade deficit, which has reached USD 137 billion in 2014-15, and the current account deficit (CAD).
The imports almost doubled in March to USD 4.98 billion which pushed the trade deficit to a four-month high of USD 11.79 billion for the month, according to the Commerce Ministry data.
India is the largest importer of gold, which mainly caters to the demand of the jewellery industry.
The Reserve Bank and the government have maintained that the CAD level is comfortable, but the spike in gold imports may spark fresh worries. It has narrowed to 1.7 per cent for the first nine months of the previous fiscal.