Gold imports decline by 6.77%

India’s gold imports witnessed a decline of 6.77% YoY during April-December, 2019-20 to reach US$ 23 billion, according to data from the Ministry of Commerce and Industry. This has helped bring down India’s trade deficit to US$ 118 billion in this period as compared to US$ 148.23 billion in the same period for the previous fiscal. India imports 800-900 tonnes of gold annually. To curb the impact of gold imports on CAD, the central government had increased the import duty on gold from 10% to 12.5%. However, industry has argued that this is compelling manufacturers to shift base to other countries. Gems & Jewellery Export Promotion Council has asked for a cut in the duty to 4%. Exports have also witnessed a decline by 6.4% YoY during this period.