As per data from the commerce ministry, India's gold imports, which have an impact on the current account deficit, decreased by almost 30% to USD 31.8 billion between April–February 2023 as a result of high customs duties and general economic uncertainty. The yellow metal was imported for USD 45.2 billion in the years 2021 to 2022.

The imports are in the negative zone since August 2022. Silver imports, however, rose by 66 per cent to USD 5.3 billion during April-February 2023. The significant fall in gold imports though has not helped in narrowing the country's trade deficit -- the difference between imports and exports. The merchandise trade deficit for AprilFebruary 2022-23 was estimated at USD 247.52 billion against USD 172.53 Billion in the year-ago period. According to industry experts, high import duty on gold and global economic uncertainties are the reason for the dip in the imports of the precious metal.

"India imported about 600 tonnes of gold during April-January 2023, and it is down because of high import duty. The government should take a view on the duty part to help domestic industry and push exports," Former GJEPC chairman and managing director of Kama Jewelry Colin Shah said. Over the years, it has been observed that any surge in gold prices dampens gold demand coupled with the sale of old gold, and another factor is the higher duty that encourages unofficial routes of gold imports, he added. 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 tonne of gold annually.

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