Imports of gold are expected to rise further in the coming months, according to the GJEPC.
The country’s gold imports are likely to increase in the coming months due to increased demand during the festival and wedding seasons, according to the Gems and Jewellery Export Promotion Council (GJEPC). During April-September 2021, gold imports, which have an impact on the current account deficit, soared to almost USD 24 billion. According to the council, imports have had a changing tendency over the last six months and are now on pace with pre-covid years’ numbers.
The second disastrous Covid wave, which led to nationwide lockdowns and temporarily paralyzed various industries, including gem and jewellery, struck gold imports hard in May (12.98 tonnes) and June (17.57 tonnes) 2021, it added.
The imports increased in August, which saw the second-highest gold imports of 118.08 tonnes, according to the report. The surge in imports during July, August, and September 2021 was due to the lifting of lockdowns, the revival of domestic and export demand, and the start of the festive season, which resulted in a substantial rise in demand for the products, according to Colin Shah, Chairman, GJEPC. “We expect gold imports to climb further in the coming months as the peak festive/wedding season boosts jewellery demand both at home and in important international markets,” Colin added. India is the world’s largest importer of gold, primarily for the jewellery industry. In volume terms, the country imports 800-900 tonnes of gold annually.