India’s gold imports, which have a bearing on the country’s current account deficit (CAD), rose by 33.34 per cent to $46.14 billion during the 2021-22 fiscal on higher demand, according to official data.
Gold imports were worth $34.62 billion in 2020-21.
During the last financial year, the surge in gold imports contributed to the widening of the trade deficit to $192.41 billion, against $102.62 billion in 2020-21.
India is the world’s second-biggest gold consumer after China. The jewellery industry primarily drives imports. The gems and jewellery exports during 2021-22 grew by about 50 per cent to about $39 billion.
According to the RBI data, India’s current account deficit widened to $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 capital transfers.
Gold imports in volume terms stood at 842.28 tonnes from April 2021 – to February 2022.