India boosts gold purchases

Bullion imports soared by more than 6% from April to July, contributing to a growing trade deficit

Purchases of gold by India, the world’s second-biggest importer of the precious metal, have seen a surge of 6.4% and amounted to $12.9 billion from April to July, according to official data revealed on Friday.

The nation’s gold imports reportedly stood at $12 billion during the same period a year ago.

The latest surge in gold and oil imports contributed to a record trade deficit of $30 billion reported in the first four months of this year, compared to $10.63 billion between April and July 2021.

In June, the Reserve Bank of India reported a wider trade gap during 2021-22 that expanded the country’s Current Account Deficit (CAD) at 1.2% of GDP against a surplus of 0.9% in the previous fiscal year.

For the January-March quarter, the CAD narrowed on a sequential basis to $13.4 billion, or 1.5% of GDP, against $22.2 billion, or 2.6% of GDP, in the October-December 2021 quarter.

READ MORE: China ramps up gold buying – Bloomberg

The nation ramped up its exports of gems and jewelry during the first four months of the current fiscal year to $13.5 billion, representing growth of nearly 7%.

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