Gold imports contract 29.5% to $1.39 bn in Feb

After a sharp rise in January, gold imports in February declined 29.49 per cent to $1.39 billion, which is expected to keep a lid on the country’s current account deficit (CAD). The sliding prices of the yellow metal in both global and domestic markets are seen as a contributory factor for the plunge. Gold imports stood at $1.98 billion in February 2015. 

The contraction in imports helped narrow trade deficit at $6.54 billion last month as against $6.74 billion in the year-ago period. India is the largest importer of gold in the world and the imports mainly cater to the demand of the jewellery industry. In July-September of the current fiscal, CAD rose to $8.2 billion, or 1.6 per cent of GDP, from 1.2 per cent, or $6.1 billion in the April-June quarter.