Rebound in gold imports widens India's trade deficit

#Economy, #Gold import, #trade deficit

Representative Image

Indian households are once again hoarding gold, pushing up the import bill and widening the trade deficit. The country’s trade deficit widened to $122 billion in April-November 2021, as gold imports shot up despite its still elevated prices.

The gold import bill for the first eight months of the current fiscal year soared 170% compared to the same period of 2020-21 and so did the trade deficit. But comparisons with the corresponding period of last year is misleading as the economy was in a lockdown for most of the first quarter and under partial lockdown in the second quarter, denying households an opportunity to spend on non-essential goods.

Comparisons with the corresponding period of 2019-20 show that both the import bill for gold as also the trade deficit were higher. The gold import bill at $33.32 billion was 61.4% higher while the trade deficit was about 7.5% wider.

The share of gold imports in the import bill for the period rose to its highest for the first time since 2015-16. International trade data published by the ministry of commerce show that gold imports by value at about 8.6% of the total imports in April-November 2021, against 6.3-7.7% in recent years. Last year was an exception, the share of gold in the import bill also declined to 5.6% of the import bill or $12.3 billion in the corresponding period due to an artificial fall in demand.

#Economy, #Gold import, #trade deficit

The volume of imports soared close to levels last seen in 2013-14. Disaggregated import data by volume till September is currently available. It shows that India imported 445 tonnes of gold, mostly in unwrought form between April and September of this year. A small quantity was imported in semi-manufactured form. Of this, two-thirds or more than 292 tonnes were imported in the second quarter, ahead of the festival season. In August alone, nearly 120 tonnes of gold was imported, which was equivalent to the total import in the first of 2020-21. Another 96 tonnes was imported in September. The country may have imported a further 150-175 tonnes in October and November.

Back in 2013-14, India imported 453 tonnes of gold, including 41 tonnes in semi-manufactured form, during April-September despite high import tariffs imposed by the Union government to cool demand.

#Economy, #Gold import, #trade deficit

Significantly, demand for gold climbed even as international prices soared. Gold prices began their rise as the pandemic wreaked havoc across the world and investors fled stock markets. While stocks recovered in a few months, international gold prices continue to stay elevated due to the rise in inflation. It has, however, come off the all-time high of $2,057 an ounce in August 2020 to trade at $1,750-1,850 in recent months.

The World Gold Council in its latest quarterly report estimated that gold jewellery demand from Indian consumers climbed 60% in the July-September quarter, both on a year-on-year and quarter-on-quarter basis, to 96 tonnes due to strong pent up demand, a rebound in economic activity and lower prices. The demand for coins and bars for investment was estimated to have climbed 27% to 43 tonnes in the second quarter.

Interestingly, it is not just Indian households that have an appetite for gold. The Reserve Bank of India has developed it too. The World Gold Council estimates that the central bank bought 41 tonnes of gold in the second quarter of the current fiscal, raising its holding to 745 tonnes. It estimates that 2021 will see the biggest rise in India’s official reserves of gold since 2009 when it purchased 200 tonnes from the International Monetary Fund.

News Related

OTHER NEWS

L&T Finance Standalone December 2021 Net Sales at Rs 16.26 crore, down 4.91% Y-o-Y

Reported Standalone quarterly numbers for L&T Finance Holdings are: Net Sales at Rs 16.26 crore in December 2021 down 4.91% from Rs. 17.10 crore in December 2020. Quarterly Net Loss ... Read more »

Shoppers Stop Standalone December 2021 Net Sales at Rs 951.25 crore, up 34.43% Y-o-Y

Reported Standalone quarterly numbers for Shoppers Stop are: Net Sales at Rs 951.25 crore in December 2021 up 34.43% from Rs. 707.60 crore in December 2020. Quarterly Net Profit at ... Read more »

Seshasayee Pape Standalone December 2021 Net Sales at Rs 334.10 crore, up 103.15% Y-o-Y

Reported Standalone quarterly numbers for Seshasayee Paper and Boards are: Net Sales at Rs 334.10 crore in December 2021 up 103.15% from Rs. 164.46 crore in December 2020. Quarterly Net ... Read more »

MOEX index up 1.03% to 3,268.75 points at trade start

By 07:06 Moscow Time, the index was at 3,285.71 points Read more »

Dollar grows to 78.79 rubles on Moscow Exchange

The euro declined by 3.5 kopecks to 89.15 rubles Read more »

South Ind Bk Standalone December 2021 Net Interest Income (NII) at Rs 572.87 crore, down 3.94% Y-o-Y

Reported Standalone quarterly numbers for South Indian Bank are: Net Interest Income (NII) at Rs 572.87 crore in December 2021 down 3.94% from Rs. 596.39 crore in December 2020. Quarterly ... Read more »

CSB Bank Standalone December 2021 Net Interest Income (NII) at Rs 303.34 crore, up 20.77% Y-o-Y

Reported Standalone quarterly numbers for CSB Bank are: Net Interest Income (NII) at Rs 303.34 crore in December 2021 up 20.77% from Rs. 251.18 crore in December 2020. Quarterly Net ... Read more »

Coronavirus Update | India logs 2,55,874 fresh COVID-19 cases, 614 deaths

Representative image After being over three lakh for five consecutive days, the single day rise in COVID-19 infections was recorded at 2,55,874, taking India’s total tally of cases to 3,97,99,202, ... Read more »

Container Corp Standalone December 2021 Net Sales at Rs 1,919.98 crore, up 9.47% Y-o-Y

Reported Standalone quarterly numbers for Container Corporation of India are: Net Sales at Rs 1,919.98 crore in December 2021 up 9.47% from Rs. 1,753.83 crore in December 2020. Quarterly Net ... Read more »

Sangam India Standalone December 2021 Net Sales at Rs 646.13 crore, up 47.44% Y-o-Y

Reported Standalone quarterly numbers for Sangam (India) are: Net Sales at Rs 646.13 crore in December 2021 up 47.44% from Rs. 438.23 crore in December 2020. Quarterly Net Profit at ... Read more »

Amal Standalone December 2021 Net Sales at Rs 16.06 crore, up 75.83% Y-o-Y

Reported Standalone quarterly numbers for Amal are: Net Sales at Rs 16.06 crore in December 2021 up 75.83% from Rs. 9.14 crore in December 2020. Quarterly Net Profit at Rs. ... Read more »

Sportking India Standalone December 2021 Net Sales at Rs 587.05 crore, up 67.1% Y-o-Y

Reported Standalone quarterly numbers for Sportking India are: Net Sales at Rs 587.05 crore in December 2021 up 67.1% from Rs. 351.31 crore in December 2020. Quarterly Net Profit at ... Read more »

Burger King Standalone December 2021 Net Sales at Rs 279.89 crore, up 71.51% Y-o-Y

Reported Standalone quarterly numbers for Burger King India are: Net Sales at Rs 279.89 crore in December 2021 up 71.51% from Rs. 163.19 crore in December 2020. Quarterly Net Loss ... Read more »

Music Broadcast Standalone December 2021 Net Sales at Rs 59.89 crore, up 47.27% Y-o-Y

Reported Standalone quarterly numbers for Music Broadcast are: Net Sales at Rs 59.89 crore in December 2021 up 47.27% from Rs. 40.67 crore in December 2020. Quarterly Net Profit at ... Read more »

Mahindra EPC Standalone December 2021 Net Sales at Rs 51.13 crore, down 36.66% Y-o-Y

Reported Standalone quarterly numbers for Mahindra EPC Irrigation are: Net Sales at Rs 51.13 crore in December 2021 down 36.66% from Rs. 80.73 crore in December 2020. Quarterly Net Loss ... Read more »

Rel Ind Infra Standalone December 2021 Net Sales at Rs 16.39 crore, up 29.4% Y-o-Y

Reported Standalone quarterly numbers for Reliance Industrial Infrastructure are: Net Sales at Rs 16.39 crore in December 2021 up 29.4% from Rs. 12.67 crore in December 2020. Quarterly Net Profit ... Read more »

Sharda Crop Standalone December 2021 Net Sales at Rs 710.40 crore, up 84.45% Y-o-Y

Reported Standalone quarterly numbers for Sharda Cropchem are: Net Sales at Rs 710.40 crore in December 2021 up 84.45% from Rs. 385.15 crore in December 2020. Quarterly Net Profit at ... Read more »

National Steel Standalone December 2021 Net Sales at Rs 200.15 crore, down 62.94% Y-o-Y

Reported Standalone quarterly numbers for National Steel & Agro Industries are: Net Sales at Rs 200.15 crore in December 2021 down 62.94% from Rs. 540.00 crore in December 2020. Quarterly ... Read more »

Gold muted as Fed caution counters Ukraine risks

Gold prices were steady on Tuesday, as concerns about a faster pace of U.S. Federal Reserve policy tightening countered safe-haven demand fuelled by escalating Ukraine tensions. Spot gold was little ... Read more »

OM Infra Standalone December 2021 Net Sales at Rs 57.40 crore, up 31% Y-o-Y

Reported Standalone quarterly numbers for OM Infra are: Net Sales at Rs 57.40 crore in December 2021 up 31% from Rs. 43.82 crore in December 2020. Quarterly Net Profit at ... Read more »

20 Microns Standalone December 2021 Net Sales at Rs 135.40 crore, up 0.68% Y-o-Y

Reported Standalone quarterly numbers for 20 Microns are: Net Sales at Rs 135.40 crore in December 2021 up 0.68% from Rs. 134.48 crore in December 2020. Quarterly Net Profit at ... Read more »

Apollo Tricoat Standalone December 2021 Net Sales at Rs 719.91 crore, up 43% Y-o-Y

Reported Standalone quarterly numbers for Apollo Tricoat Tubes are: Net Sales at Rs 719.91 crore in December 2021 up 43% from Rs. 503.44 crore in December 2020. Quarterly Net Profit ... Read more »

Reliance Standalone December 2021 Net Sales at Rs 117,396.00 crore, up 74.18% Y-o-Y

Reported Standalone quarterly numbers for Reliance Industries are: Net Sales at Rs 117,396.00 crore in December 2021 up 74.18% from Rs. 67,400.00 crore in December 2020. Quarterly Net Profit at ... Read more »

Agro Tech Foods Standalone December 2021 Net Sales at Rs 245.52 crore, down 0.33% Y-o-Y

Reported Standalone quarterly numbers for Agro Tech Foods are: Net Sales at Rs 245.52 crore in December 2021 down 0.33% from Rs. 246.34 crore in December 2020. Quarterly Net Profit ... Read more »

Pioneer Distill Standalone December 2021 Net Sales at Rs 54.60 crore, up 70.2% Y-o-Y

Reported Standalone quarterly numbers for Pioneer Distilleries are: Net Sales at Rs 54.60 crore in December 2021 up 70.2% from Rs. 32.08 crore in December 2020. Quarterly Net Loss at ... Read more »

S E Power Standalone December 2021 Net Sales at Rs 12.52 crore, up 58.4% Y-o-Y

Reported Standalone quarterly numbers for S E Power are: Net Sales at Rs 12.52 crore in December 2021 up 58.4% from Rs. 7.91 crore in December 2020. Quarterly Net Loss ... Read more »

Tanla Platforms Standalone December 2021 Net Sales at Rs 364.08 crore, up 45.03% Y-o-Y

Reported Standalone quarterly numbers for Tanla Platforms are: Net Sales at Rs 364.08 crore in December 2021 up 45.03% from Rs. 251.03 crore in December 2020. Quarterly Net Profit at ... Read more »

Oriental Trimex Standalone December 2021 Net Sales at Rs 4.92 crore, up 102.09% Y-o-Y

Reported Standalone quarterly numbers for Oriental Trimex are: Net Sales at Rs 4.92 crore in December 2021 up 102.09% from Rs. 2.43 crore in December 2020. Quarterly Net Loss at ... Read more »

Jyothy Labs Standalone December 2021 Net Sales at Rs 528.65 crore, up 12.62% Y-o-Y

Reported Standalone quarterly numbers for Jyothy Labs are: Net Sales at Rs 528.65 crore in December 2021 up 12.62% from Rs. 469.41 crore in December 2020. Quarterly Net Profit at ... Read more »

Daily Voice | Government keen on expanding Make in India rather than measures for affected sectors in Budget 2022: Raghvendra Nath of Ladderup Wealth

Raghvendra Nath is the Managing Director of Ladderup Wealth Management Since Covid-19 began spreading across India in March 2020, the government has been helping affected sectors and industries through various ... Read more »

Dodla Dairy Standalone December 2021 Net Sales at Rs 532.18 crore, up 13.76% Y-o-Y

Reported Standalone quarterly numbers for Dodla Dairy are: Net Sales at Rs 532.18 crore in December 2021 up 13.76% from Rs. 467.82 crore in December 2020. Quarterly Net Profit at ... Read more »

Ramcoind Standalone December 2021 Net Sales at Rs 268.00 crore, up 8.98% Y-o-Y

Reported Standalone quarterly numbers for Ramco Industries are: Net Sales at Rs 268.00 crore in December 2021 up 8.98% from Rs. 245.92 crore in December 2020. Quarterly Net Profit at ... Read more »

Jasch Ind Standalone December 2021 Net Sales at Rs 62.85 crore, up 42.18% Y-o-Y

Reported Standalone quarterly numbers for Jasch Industries are: Net Sales at Rs 62.85 crore in December 2021 up 42.18% from Rs. 44.20 crore in December 2020. Quarterly Net Profit at ... Read more »

Supriya Lifesci Standalone December 2021 Net Sales at Rs 117.00 crore, up 45% Y-o-Y

Reported Standalone quarterly numbers for Supriya Lifescience are: Net Sales at Rs 117.00 crore in December 2021 up 45% from Rs. 80.69 crore in December 2020. Quarterly Net Profit at ... Read more »

ZF Steering Gea Standalone December 2021 Net Sales at Rs 85.24 crore, up 32.63% Y-o-Y

Reported Standalone quarterly numbers for ZF Steering Gear (India) are: Net Sales at Rs 85.24 crore in December 2021 up 32.63% from Rs. 64.27 crore in December 2020. Quarterly Net ... Read more »

Heritage Foods Standalone December 2021 Net Sales at Rs 657.14 crore, up 11.71% Y-o-Y

Reported Standalone quarterly numbers for Heritage Foods are: Net Sales at Rs 657.14 crore in December 2021 up 11.71% from Rs. 588.24 crore in December 2020. Quarterly Net Profit at ... Read more »

PCBL Standalone December 2021 Net Sales at Rs 1,156.14 crore, up 50.27% Y-o-Y

Reported Standalone quarterly numbers for PCBL are: Net Sales at Rs 1,156.14 crore in December 2021 up 50.27% from Rs. 769.40 crore in December 2020. Quarterly Net Profit at Rs. ... Read more »

Bangalore Fort Standalone December 2021 Net Sales at Rs 2.75 crore, down 20.31% Y-o-Y

Reported Standalone quarterly numbers for Bangalore Fort Farms are: Net Sales at Rs 2.75 crore in December 2021 down 20.31% from Rs. 3.45 crore in December 2020. Quarterly Net Loss ... Read more »

Deepak Nitrite Standalone December 2021 Net Sales at Rs 689.16 crore, up 41.29% Y-o-Y

Reported Standalone quarterly numbers for Deepak Nitrite are: Net Sales at Rs 689.16 crore in December 2021 up 41.29% from Rs. 487.77 crore in December 2020. Quarterly Net Profit at ... Read more »

Lyka Labs Standalone December 2021 Net Sales at Rs 28.18 crore, up 49.02% Y-o-Y

Reported Standalone quarterly numbers for Lyka Labs are: Net Sales at Rs 28.18 crore in December 2021 up 49.02% from Rs. 18.91 crore in December 2020. Quarterly Net Profit at ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic