To control the current account deficit, the Center last year raised the import duty on gold from 10.75 per cent to 15 per cent. (Representational image)
Gems and jewelery exports to decline by 3 per cent to around USD 38 billion during 2022-23.
India’s gold imports are set to decline by 24.15 per cent to $35 billion in 2022-23 due to global economic uncertainties impacting the current account deficit, according to commerce ministry data.
Imports of the yellow metal in 2021-22 stood at USD 46.2 billion.
During August 2022 to February this year, the rate of growth in imports remained in negative territory. This increased to USD 3.3 billion in March 2023, as against USD 1 billion in the year-ago month.
However, silver imports increased by 6.12 per cent to $5.29 billion during the last financial year.
However, the sharp drop in gold imports has not helped reduce the country’s trade deficit – the difference between imports and exports. The merchandise trade deficit in 2022-23 was estimated at USD 267 billion as against USD 191 billion in the year-ago period.
According to industry experts, high import duty on gold and global economic uncertainties have led to a decline in the import of the precious metal.
“India imported around 600 tonnes of gold during April-January 2023, and this is down due to high import duty. An expert said, the government should consider the duty side to help the domestic industry and promote exports.
India is the largest importer of gold, which mainly meets the demand of the jewelery industry. In terms of quantity, the country imports 800-900 tonnes of gold annually.
Gems and jewelery exports to decline by 3 per cent to around USD 38 billion during 2022-23.
Last year, the Center had increased the import duty on gold from 10.75 per cent to 15 per cent to curb the current account deficit (CAD).
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)