India’s gold imports fell by 76 percent

India’s gold imports have collapsed. Imports fell 76 percent in January compared to the same period last year. Imports fell to a 32-month low. News Reuters.

According to sources related to the government, the rate of purchase of gold ornaments was on the downward trend last month in anticipation of reduction in import duty. Moreover, the demand for the precious metal was also at the bottom due to the record price hike. Due to this import has decreased significantly.

India is the second top gold user in the world. Gold market benchmark prices may come under downward pressure due to reduced imports into the country. However, experts expect that this will help in reducing the country’s trade deficit as well as reducing volatility in the currency market.

India imported a total of 11 tonnes of gold in January. During the same period last year, the import volume was 45 tonnes. In terms of monetary value, imports decreased from 2.38 billion dollars to 69.7 million dollars.

A Mumbai-based dealer of a private bank that imports gold said, “Last month, the future supply price of gold per 10 grams in the local market of India increased to 57 thousand 270 rupees. During the wedding season in January, there was a possibility of a huge increase in gold import or demand. But due to the skyrocketing prices, the demand for the metal in the retail market has decreased.

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