Gold imports jump 140% to $4.95 billion in August

Gold imports more than doubled to $4.95 billion in August, driven by dip in global prices and higher domestic demand in view of forthcoming festival season.

Gold imports more than doubled to $4.95 billion in August, driven by dip in global prices and higher domestic demand in view of forthcoming festival season.

In August 2014, imports stood at $2.06 billion.

Higher imports will have adverse bearing on India's current account deficit (CAD).

The growth in gold imports has pushed the country's trade deficit to $12.47 billion in August.

India is the largest importer of gold in the world, which mainly caters to the demand of the jewellery industry. Labour intensive gems and jewellery exports in August grew by 2.66% to $3.35 billion.

Current account deficit happens when value of import of goods and services is more than that of exports.

The CAD in 2014-15 shrank to 1.3% of GDP ($27.5 billion) from 1.7% ($32.4 billion) in 2013-14.

At London market, gold prices on Tuesday fell marginally to $1106.63 per ounce ahead of the meeting of US Federal Reserve on interest rates. Silver prices also declined by 0.7% to $14.33 per ounce over the last year.

In the national capital, too, gold prices dropped marginally to Rs 26,350 per 10 grams and silver to Rs 34,500 per kg, taking weak cues from the global market.