Gems and jewellery exporters feel the heat of govt curbs on gold imports

Amid rising risks to external demand, the government is concerned about widening trade deficit, bringing the focus back on curbing non-essential imports

 

A 75 per cent dip in gold imports in December, triggered by government’s efforts to curb non-essential imports, led to contraction in India’s overall imports for the first time in 25 months, while a resultant supply constraint of gold contributed to a 15 per cent decline in gems and jewellery exports.

 

Gold imports dropped to $1.2 billion in December while gems and jewellery exports stood at $2.5 billion.

 

India’s merchandise imports in December contracted 3.5 per cent to $58.24 billion while merchandise exports slid 12 per cent to $34.48 billion, leading to a marginal sequential widening of the trade deficit to $23.8