Gold imports rise to USD 1.98 bn in February

Gold imports in February rose to USD 1.98 billion (Rs 12,293 crore), the second successive monthly rise.
Gold imports had inched up in January 2015 to USD 1.55 billion.
Despite easing in gold import norms, the shipments had dropped sharply in December 2014. The December import figure stood at USD 1.34 billion, about one-fourth of the quantity in November.
As per data released by the Commerce Ministry this month, the gold shipments in February jumped 48.78 per cent on a year-on-year basis.
India is the largest importer of gold, which is mainly utilised to meet the demand of the jewellery industry.

In November 2014, the RBI had eased restrictions on gold imports by scrapping the controversial 80:20 scheme.

Under the 80:20 norm, put in place in August 2013 to curb high gold inflows that was widening the current account deficit, at least 20 per cent of the imported gold had to be mandatorily exported before bringing in new lots.
Government has been repeatedly asking people to desist from buying gold and instead invest in other saving instruments.
Higher gold import bill adversely affects the country's current account deficit (CAD).
The data further revealed import of silver contracted by 60.47 per cent in February to USD 121.42 million. Imports of petroleum, crude and its products shrank 55.49 per cent.