Gold Imports Surge in India Amid Soaring Demand

India's gold imports skyrocketed by 40.79% in January, reaching USD 2.68 billion, driven by strong domestic demand. Imports for the fiscal year rose 32%, impacting the current account deficit. Switzerland, UAE, and South Africa are major suppliers, while prices increased 11%. The jewellery industry heavily influences import growth.

India's gold imports witnessed a significant leap in January, growing by 40.79% to hit USD 2.68 billion, largely driven by a burgeoning domestic demand, as outlined by commerce ministry data.

Over the wider fiscal year window from April to January, imports climbed by 32% to USD 50 billion compared to USD 37.85 billion in the previous fiscal period. This surge reflects robust investor trust in gold as a stable investment.

With prices climbing 11% this year, reaching Rs 88,200 per 10 grams in the capital, contribution from countries like Switzerland, UAE, and South Africa is notable with the metal impacting India's current account deficit significantly.

(With inputs from agencies.)