In the month of March, India’s gold imports soared by 471 per cent from a year-ago period. It was up by 160 tonnes, Reuter quoted a government source. This can be attributed to the reduction in import taxes and the price correction of gold that had lured the buyers and jewellers.
The report further stated this upward movement in gold imports have increased India’s trade deficit and put pressure on the rupee. India imported a record 321 tonnes in the March quarter, up from 124 tonnes a year ago, the source said.
In value terms, March imports surged to $8.4 billion from $1.23 billion a year ago, he said. In February, India slashed import duties on gold to 10.75 per cent tax from 12.5 per cent to boost retail demand and reduce smuggling.
It is expected that jewellers were building inventories after retail demand picked up, said a Mumbai-based bullion dealer. “Throughout the month gold was trading at a premium because of jewellery demand,” the dealer said.
According to IBJA rates on April 1, 2021, the price of 24-karat gold stands at Rs 44,917 per 10 grams and 22-karat was priced at Rs 44,737 per 10 grams. On MCX, June gold futures were at Rs 44,977 per 10 grams.