Thursday, April 25th 05:17 PM IST

India Gold import,demand surge

# India gold reserves  # import tariff value  # gold imports  

India's gold imports grew 12% year-on-year to Rs 2.75 lakh crore in April 2012-February 2013 with the bulk of the buying coming in the past few months when prices headed south.

NEW DELHI(BullionStreet): World's largest gold consumer India's demand multiplied after the recent gold plunge and that in turn resulted in increased import of the yellow metal.

People turned up in sizable numbers at jeweleries across the country as primary dealers of gold in India struggled to keep pace with robust demand quoting higher premiums, even as prices recovered partially from their lowest level in more than 18 months.

Most of the jewellers have been stocking for Akshaya Tritiya, the second biggest gold buying festival after Dhanteras, and weddings, which will continue until July. Most of the gold bars get imported in India through foreign banks, which has an agreement with the miners.

India's gold imports grew 12% year-on-year to Rs 2.75 lakh crore in April 2012-February 2013 with the bulk of the buying coming in the past few months when prices headed south.

Imports of the yellow metal zoomed 38.7% between September 2012 and February 2013 to Rs 1.89 lakh crore, data with the Centre for Monitoring Indian Economy (CMIE) showed.

This prompted the government to increase the import duty on gold in January. But the levy didn't seem to have much impact with gold imports surging 27.9% y-o-y in value terms to Rs 29,425 crore in February.

Indian government has been trying to limit imports to keep a lid on record current account deficit, and the economic advisory council expects the country to import $45 billion tonnes of the yellow metal in the year to March 2014.

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