New Delhi. Gold imports more than doubled to a record high of $10.06 billion in August due to a huge cut in customs duty and increased demand due to festivals. According to data released by the Ministry of Commerce, gold imports stood at $4.93 billion in the same period a year ago. Commerce Secretary Sunil Barthwal, in his reaction to this record level of gold imports, said that customs duty rates on gold have been drastically reduced to reduce gold smuggling and other activities.

Barthwal told reporters here, "This is the time when jewelers start stocking their goods for sale during the festive season." In the budget for the financial year 2024-25, the government had announced to reduce the duty from 15 percent to six percent. India's gold imports declined by 4.23 percent to $ 12.64 billion in the first four months (April-July) of the current financial year. In the last financial year 2023-24, the country's gold imports had increased by 30 percent to $ 45.54 billion.

Where does the maximum import come from?
India imports most of its gold from Switzerland, which has a share of about 40 percent. After this, the United Arab Emirates (UAE) is in second place with a share of more than 16 percent and South Africa is in third place with a share of about 10 percent. The share of this precious metal in the country's total imports is more than five percent.

Trade deficit widens
A surge in gold imports pushed the country's trade deficit (the difference between imports and exports) to $29.65 billion in August. India is the second-largest consumer of gold in the world after China. This import mainly meets the demand of the jewelry industry.