Recording a multi-fold jump, India's gold imports rose to USD 4.17 billion in March, which is expected to widen the current account deficit.
Gold imports stood at USD 974 million in March last year, official data released today showed.
Imports of the precious metal were on a decline since February 2016 till September 2016. It grew in October and November last year but again dipped in December 2016 and January 2017.
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In February, the inbound shipments grew to USD 3.48 billion from USD 1.4 billion in the same month previous year.
Surge in gold imports in March widened the trade deficit to a four-month high of USD 10.4 billion as against USD 4.4 billion in March 2016.
Silver imports, however, dipped by 3.19 per cent to USD 204.2 million in March.
According to rating agency ICRA, the imports surge was led by restocking, as well as marriage and festive season demand.
India is the world's second biggest gold consumer after China. The imports mainly take care of demand from the jewellery industry.
In volume terms, India imported 560.32 tonnes of gold during April-January period of the last fiscal.
Gold import aggregated to 968.06 tonnes in the entire 2015-16 fiscal and 915.47 tonnes in 2014-15.
At present, gold import attracts 10 per cent duty. The gems and jewellery industry along with the Commerce Ministry have time and again urged the Finance Ministry to consider cut in the import duty.
For the full year 2015-16, CAD stood at USD 22.1 billion, or 1.1 per cent of GDP, as against USD 26.8 billion, or 1.3 per cent, in 2014-15.
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