According to India’s Ministry of Commerce, gold imports into India fell by 14.23% in value terms during FY2019-20 to $ 28.2 bln as against during FY2018-19, when the country’s imports of gold stood at $32.91 bln, reports Press Trust of India (PTI).
Gold prices which were at $ 1,450 per oz levels have climbed steadily and now hovers between $ 1,650 and the $ 1,710 mark due to demand from investors seeking a safe haven.
According to PTI, gold imports turned negative during the last four months of the fiscal, coinciding with a steady rise in the gold price due to the uncertain political and economic situation worldwide.
Jewellery demand has hit because of the lockdown in India and will also affect Akshaya Tritiya sales as the lockdown has been extended till May 3. Akshaya Tritiya is traditionally the second most important day for the purchase of gold in India. Shopping for the wedding season will also be hit, affecting demand for jewellery.
With this scenario, imports of gold will decline even further during the current year. The Confederation of Indian Industry (CII) has reportedly written to the government, recommending measures, including setting up a fund for artisans; reducing import duty on gold to 2%; a complete waiver of interest on loans and allowing e-commerce for jewellery among other things to help the industry tide over the current crisis.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
