Gold imports dip 9% during Apr-Oct

New Delhi: India's gold imports, which have a bearing on the current account deficit (CAD), dipped 9 per cent to $17.63 billion (about Rs 1.25 lakh crore) during April-October period of the current fiscal, according to Commerce Ministry data.

Imports of the yellow metal stood at $19.4 billion in the same period of 2018-19. Dip in gold imports has helped in narrowing the country's trade deficit to $94.72 billion during April-October period of 2019-20 as against $116.15 billion in the same period of previous fiscal.

Gold imports had been recording a negative growth since July this year. However, it grew by about 5 per cent to $1.84 billion in October.

India is the largest importer of gold, which mainly caters to the demand of the jewellery industry. In volume terms, the country imports 800-900 tonnes of gold annually.

To mitigate the negative impact of gold imports on trade deficit and CAD, the government increased the import duty on gold to 12.5 per cent in this year's Budget.