India’s gold imports surge 471 per cent in March to glitter at a record 160 tonne

Higher imports by the world’s second-biggest bullion consumer could support benchmark gold prices, which have corrected nearly 17% from an all-time high of $2,072 in August 2020.

The surge in imports could increase India’s trade deficit and pressure the rupee. India imported a record 321 tonnes in the March quarter, up from 124 tonnes a year ago, the source said. The source asked to remain anonymous since he is not authorised to speak to the media. In value terms, March imports surged to $8.4 bn from $1.23 bn a year ago, he said. In February, India slashed import duties on gold to 10.75 pc tax from 12.5 pc to boost retail demand and curtail smuggling into the South Asian country.

“Many consumers had postponed buying due to higher prices. They rushed to buy after prices corrected sharply,” said Harshad Ajmera, the proprietor of JJ Gold House, a wholesaler in the city of Kolkata.

In March, local gold futures hit a one-year low of 43,320 rupees per 10 grams.