Gold imports in India have increased rapidly in recent months. According to government data, from April to September 2023-24, gold imports increased by 21.78 percent to US$27 billion. This increase is mainly due to strong domestic demand and the festive season. When the time of festivals comes, the purchase of gold increases, which leads to a boom in the market.

Major exporters of gold

Most of India's gold comes from Switzerland, which is the largest exporter with a 40 percent share. It is followed by the United Arab Emirates (UAE) and South Africa, which export 16 percent and 10 percent of gold respectively. These figures show that India is playing an important role in the global gold market.

trade deficit widening

This surge in gold imports is also affecting the country's trade deficit. In the first half of the current financial year, the trade deficit has reached US$ 137.44 billion. It was US$ 119.24 billion in the same period last year. India's current account deficit (CAD) is also being affected by the increase in gold imports, which has reached 1.1 percent of GDP.

Silver also jumped

Apart from gold, silver imports have also increased. According to recent data, silver imports have increased by 376.41 percent to US $ 2.3 billion. In the same period last year, this figure was only US $ 480.65 million. The increasing demand for silver also reflects the strength of India's consumer market.

major consumer of gold

India is the world's second-largest consumer of gold, after China. Gold is imported mainly for the jewelry industry. In the past few years, there has been a surge in demand for gold during the festive season. This shows how important gold is in Indian culture.

It is worth noting that India's gold imports are not only important from an economic point of view, but it is also a reflection of Indian culture and traditions. As the demand in the market is increasing, India's gold market is becoming even stronger.