India imports made up 86 pc of 2016-20 gold supply

Mumbai: According to a survey by the World Gold Council, imports accounted for 86 percent of India's gold supply between 2016 and 2020, and inbound shipments continue to expand despite hefty import duties (WGC).

According to the WGC's 'Bullion Trade in India' report, India has imported 6,581 tonnes of gold, averaging 730 tonnes per year, since the first tariff hike in 2012. In 2020, India imported 377 tonnes of gold bars and dore from over 30 countries, with Switzerland (44 percent) and the United Arab Emirates (35 percent) accounting for 55 percent of total imports (11 percent).

Imports of gold dore have increased, which is a significant move in India's gold market. According to the research, the growth shows the government's accommodating attitude toward gold refining. Gold dore imports accounted for 30 percent of total official imports of the yellow metal in the last five years.

Benefits from duty reductions resulted in a major growth of refining capacity in the country, with the number of refineries increasing from three in 2012 to 32 by 2020. Because of the decreased tariff on gold dore, its percentage of gold imports has risen from 11 percent in 2014 to 29 percent in 2020.

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