India’s Gold Imports Surge Nearly 41% in January Amid Rising Demand

 

India’s gold imports jumped 40.79% to $2.68 billion in January, according to recent commerce ministry data. This surge is attributed to increasing domestic demand, strong investor confidence in gold as a safe asset, and global uncertainties. The rise in gold imports has contributed to a widening trade deficit, reaching USD 23 billion for the month.

Cumulatively, gold imports during April-January of the current fiscal year have increased by 32% to USD 50 billion, compared to USD 37.85 billion in the same period last year. Switzerland remains the largest source of gold imports, accounting for approximately 40%, followed by the UAE (over 16%) and South Africa (around 10%). The increase in gold prices has also been noted, with prices of the precious metal rising 11% this year to Rs 88,200 per 10 grams in the national capital. Silver imports also saw a significant rise, increasing by 82.84% to USD 883.18 million.

Source: Rediff Money