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Know why gold import decreased in India?

Monday - February 17, 2020 1:10 pm , Category : WTN SPECIAL
Gold imports fall by almost 9 percent
Gold imports fall by almost 9 percent

Due to 'these' reasons, gold jewelry can be expensive in the coming times 
 

FEB 17 (WTN) - Indian's craze for gold is not hidden from anyone. Gold has been considered one of the best wealth investments since ancient times. For this reason, women make gold ornaments in large numbers, so that during the financial crisis, these gold ornaments can become support. For your information, let us know that India imports 800 to 900 tones of gold every year. At the same time, according to the data, India imported $ 31.8 billion gold in the financial year 2018-19. Explain that after Switzerland and China, India is at number three in the list of gold importing countries. But if we tell you that there is a decrease in gold imports in a country like India, which is crazy for Gold, you must have been shocked after reading this. Actually, what is this whole matter? Let us explain this in detail.
 
For your information, let us know that the import of gold in the country has decreased by about 9 percent during the period of April-January in the current financial year. Yes, during the period of April-January, India had imported gold worth only $ 24.64 billion. Explain that during the same period (April-January), India had imported gold worth $ 27 billion in the FY 2018-19. However, the country's trade deficit stood at $ 133.27 billion in the April-January period due to other reasons, including lower gold imports in this fiscal year, compared to $ 163.27 billion in the same period a year ago.
 
If the import of gold in a country like India is decreasing, it is a surprising fact in itself. For your information, let us know that the decline in gold imports has been going on since July last year. However, during Diwali last year, it registered positive growth in the months of October and November. But in the month of December, about 4 percent, and in January this year, a decline of 31.5 percent has been recorded in gold imports.
 
As we told you that India is one of the largest importers of gold. In India, such a large amount of gold is imported to meet the demand of the jewelry industry. But due to the import of gold, the Indian government has to spend a lot of valuable foreign exchange. In order to reduce the trade deficit and current account deficit due to gold imports, the Modi government has increased import duty on gold imports from 10 percent to 12.5 percent. It is being said that this step of the Modi government affected the import of gold, and the import of gold has come down from earlier.
 
In fact, due to the increase in import duty on gold imports by the government, traders associated with its trade were making fewer profits. In such a situation, big businessmen associated with gold import and jewelry making business have shifted their manufacturing unit to neighboring countries due to the higher import duty on gold. It is being said that the import duty on gold in these countries is less than to India, whereas manufacturing cost is also lower here compared to India. For this reason, the decline in gold imports is being recorded.
 
However, for your information, let us know that the reduction in gold imports has been recorded, but the figures for any decrease in the sale of gold jewelry have not yet been revealed. The sale of gold jewelry is continuously happening in India, but due to the high import duty on gold, now large manufacturing units of gold jewelry are shifted to neighboring countries. But experts say that due to many reasons, gold jewelry can become expensive in the coming time. Firstly, the increase in import duty on gold will affect the prices of gold jewelry. At the same time, gold ornaments will also be expensive from next year due to the hallmark being mandatory. Due to all these circumstances, gold jewelry can be expensive by 5 to 8 percent in the coming time.