Gold imports plunged by 59.5 per cent to USD 1.7 billion in October which will help curb the country's Current Account Deficit (CAD).
The sliding prices of the yellow metal is one of the reasons for a dip in imports. The prices are declining in both global and domestic markets.
The gold imports stood at USD 4.20 billion in October 2014.
The contraction in imports helped in narrowing the trade deficit to USD 9.76 billion in October, lowest since February. It was USD 6.85 billion in that month.
This year, the imports of the yellow metal were up 62.2 per cent and 140 per cent in July and August, respectively. In September, the inward shipments declined by 45.6 per cent.
India is the largest importer of gold in the world. The imports mainly cater to the demand of jewellery industry.
In 2014-15, gold was the third largest commodity imported in India after crude oil and electronic items. During that fiscal, the country's imports stood at USD 34.32 billion.
The CAD in 2014-15 shrank to 1.3 per cent of GDP (USD 27.5 billion) from 1.7 per cent (USD 32.4 billion) in 2013-14.
