Gold imports by Indian state touched multi-year highs in FY 15

Author: Paul Ploumis
02 Apr 2015 Last updated at 08:24:57 GMT
NEW DELHI (Scrap Monster): According to latest official trade data released by the Gujarat State Export Corporation Limited (GSECL), the gold bullion imports by the state touched highest levels in four years during 2014-’15, primarily on account of recent relaxations in gold import norms by the new government.

As per trade figures released yesterday, the total gold imports during the financial year FY 15 totaled 152.24 metric tonnes (MT). The imports surged significantly higher by 66.79% when compared with the gold bullion imports of 91.27 MT recorded during FY 14. The gold imports during March this year skyrocketed to 20.73 MT, after remaining flat under 5 MT during the three months prior to it.

During third week of May last year, the government had announced relaxation on gold import curbs, by allowing star and premier export houses to import the yellow metal while banks and nominated agencies were allowed to provide gold for domestic use as loans to jewelers and bullion traders. Consequently, the domestic gold price in the country declined sharply. Moreover, gold prices in overseas market remained low. The domestic demand for gold had been steady throughout the fiscal year, which also boosted gold shipments. According to GSECL, the rise in gold imports is a clear indicator of economic recovery.

On the other hand, silver imports by the state plunged during 2014-'15. The silver imports by the state during the fiscal totaled 625 MT, significantly lower by 56.15% when compared with net imports of 1425.11 MT during 2013-'14. The falling demand for silver from industrial sector mainly accounted for lesser shipments during FY 15, noted GSECL. The excess silver inventory with traders also led to slighter imports.