Gold imports in India have witnessed a significant drop of 24.15% during the 2022-23 fiscal year, with the total value of imports amounting to $35.01 billion. This decline is primarily attributed to the increase in the prices of gold, coupled with the impact of the import duty hike that took place in July 2022. The Ministry of Commerce data reveals that gold imports during 2021-22 amounted to $46.16 billion, indicating a significant decrease in imports for the current fiscal year.

Despite this overall decline in gold imports, the month of March witnessed a massive surge of 216.75%, with India importing gold worth $3.3 billion compared to $1.04 billion in March 2022. Industry observers suggest that this surge was driven by demand ahead of Akshay Tritiya, a popular Hindu festival that is traditionally associated with buying gold.

Colin Shah, former GJEPC chairman and managing director of Kama Jewelry, attributed the decline in gold imports to the rise in gold prices and the import duty hike. The increase in import duty from 7.5% to 12.5% was a move by the Indian government to reduce imports and curb the impact on the current account deficit.

It is worth noting that India’s domestic gold demand is primarily met through imports, making it crucial for the country to monitor and manage gold imports. Despite the overall decline in gold imports, the surge in demand seen in March 2023 indicates that the demand for gold in India remains strong.