India Gold Imports Spiraled, Driven by Strong Festive and Export Demand

SEATTLE (Scrap Monster):  The Gem & Jewellery Export Promotion Council (GJEPC) said that gold imports in India have recovered to pre-Covid-19 levels, mainly driven by strong festive and export demand. The imports had witnessed fluctuating trend over the past six-month period.

The gold imports averaged at 72.16 tonnes in April-September ’21. This is almost at par with the imports of 80.51 tonnes in 2017-’18, 87.92 tonnes in 2018-’19 and 70 tonnes in 2019-’20. In value terms, the gold imports during the six-month period stood at $3,992.34 million, significantly higher than the previous years, mainly due to higher gold prices and rupee exchange rates.

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The second wave of the pandemic impacted gold imports during the months of May and June this year. The imports dropped to touch six-month low of 12.98 tonnes in May, though it recovered marginally to 17.57 tonnes in June. The imports rebounded strongly to 118.08 tonnes in August, GJEPC report said.

Colin Shah, Chairman, GJEPC noted that the lifting of lockdowns, revival of domestic and export demand and the start of the festive season led to increased gold imports. The imports will see further rise in the forthcoming months, he added.