India's gold imports increased by 61% in April-May
Mumbai-India (Aug 2) India's gold imports increased by about 61% to 155 tonnes in the first two months of the current fiscal mainly due to weak global prices and the easing of restrictions by the Reserve Bank of India (RBI).
In the international market, gold has been trading weak over the past few months. On Friday, it closed at $1,095 in the New York market.
Large imports of gold impact the country's current account deficit, which occurs when the value of the import of goods and services is more than its exports. The CAD in 2014-15 shrank to 1.3% of GDP from 1.7% in 2013-14.
The RBI and the government have maintained that the CAD level is comfortable.
In 2014-15, India imported 915.54 tonnes of gold as against 661.71 tonnes in the previous financial year.
India is the world's second largest gold consumer...after China.