India’s Gold imports jump 62.2% in July

New Delhigold-smuggling: After declining in June, India’s gold imports jumped 62.2% to $2.96 billion in July, 2015, a development which may have adverse bearing on India’s Current Account Deficit (CAD).

Imports of the precious metal stood at $1.82 billion in July, 2014. In June this year, the imports dipped 37 per cent to $1.96 billion.

The growth in gold imports has pushed the country’s trade deficit to an eight month high of $12.81 billion in July.

The CAD in 2014-15 shrank to 1.3 per cent of GDP ($27.5 billion) from 1.7 per cent ($32.4 billion) in 2013-14. The Reserve Bank and the government have maintained that the CAD level is comfortable.