Gold and silver imports declined 77 per cent to USD 1.72 billion in January 2014 mainly due to restrictions imposed by the government on inbound shipments of the precious metal for narrowing current account deficit.
Imports of gold and silver in January 2013 stood at USD 7.49 billion. In December 2013, imports were worth USD 1.77 billion.
The imports of two metals during April-January 2014 too declined 37.8 per cent to USD 27 billion from USD 46.7 billion in April-January 2013.
Lower imports has helped narrow trade deficit to USD 9.92 billion in January from USD 18.7 billion.
Commerce Secretary Rajeev Kher said that the narrowing trade deficit "is something to celebrate".
India's current account deficit (CAD), which is the excess of foreign exchange outflows over inflows, touched a historic high of 4.8 per cent of GDP in 2012-13, mainly due to rising imports of petroleum products and gold.
A high CAD puts pressure on the rupee, which is hovering at around 62-63 against the US dollar.
According to a finance ministry official, CAD is expected to fall by almost 50 per cent to USD 45 billion in the current financial year.
The Reserve Bank had last month projected CAD to be at less than USD 50 billion or 2.5 per cent, down from USD 88.2 billion or 4.8 per cent of GDP in 2012-13.
The government had increased customs duty on gold to 10 per cent and banned import of gold coins and medallions, while RBI linked imports of the metal to exports.
India is the largest importer of gold, which is mainly utilised to meet the demand of the jewellery industry. Imports stood at about 830 tonnes in 2012-13.
