Gold imports surges to $3.97 billion in April

New Delhi: Gold imports increased 54 per cent to $3.97 billion in April, widening the country's trade deficit and fuelling worries about the current account deficit (CAD).

Imports of the precious metal stood at $2.58 billion in April 2018, according to data from the commerce ministry. Increase in gold imports pushed the country's trade deficit to a five-month high of $15.33 billion in April.

The country's current account deficit (CAD) widened to 2.5 per cent of GDP in the third quarter of the last financial year from 2.1 per cent a year ago, primarily on account of a higher trade deficit, though the foreign exchange reserves continued to soar. CAD is the difference between outflow and inflow of foreign exchange.

After recording a negative growth in imports in February, gold imports started registering double-digit growth.

In March, it grew 31 per cent to $3.27 billion. India is the largest importer of gold, which mainly caters to the demand of the jewellery industry.

In volume terms, the country imports 800-900 tonnes of gold annually. The imports dipped about 3 per cent in value terms to $32.8 billion during 2018-19.