COMMODITY
India’s gold imports rise four-fold in November 2024
Dec-17-2024

Commerce ministry in its latest report stated that India’s gold imports stood at $14.86 billion in November 2024 as compared to $3.44 billion in November 2023, registering four-fold jump, mainly on account of festival and wedding demands. Cumulatively, imports during April-November this fiscal year rose 49% to $49 billion as against $32.93 billion in the same period last fiscal year.

According to the ministry, gold, with about 25% average annual return, is one of the best-performing assets in 2024 (till November) and high imports indicate strong investor confidence in the precious metal as a safe asset. The other reasons include asset diversification towards gold due to global uncertainties, increasing demand from banks, cut in customs duties.

Prices of the yellow metal have increased 23% so far this year to Rs 78,350 per 10 gm in the national capital. In the Budget, the government slashed the duty from 15% to 6%. India's gold imports, which have a bearing on the country's current account deficit (CAD), surged 30% to $ 45.54 billion in 2023-24.

The precious metal accounts for over 5% of the country's total imports. The jump in gold imports pushed the country's trade deficit (difference between imports and exports) to a record $37.84 billion in November. India is the world's second-biggest gold consumer after China. The imports mainly take care of the demand by the jewellery industry. 


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