Gold Glimmers: Unprecedented Surge in Imports Sparks Trade Concerns

In November, India's gold imports reached a record high of USD 14.86 billion, tripling the country's trade deficit to USD 37.84 billion. The surge is attributed to festival demands and asset diversification amidst global uncertainties. The government is scrutinizing the data for potential errors.

India's gold imports hit an unprecedented high of USD 14.86 billion in November, triggering a record trade deficit of USD 37.84 billion. The spike, largely driven by festive and wedding demands, has prompted a government inquiry into potential data mishandling.

The Directorate General of Commercial Intelligence and Statistics (DGCI&S) is examining the statistics, aiming to reconcile figures with the Central Board of Indirect Taxes and Customs. Comprising a four-fold increase from last year's USD 3.44 billion, these numbers reflect strong investor confidence in gold as a secure asset amid global uncertainties.

Switzerland remained India's top supplier, contributing 40% of the imports. As concerns grow over the impact on India's current account deficit, a review of the free trade agreement with the UAE is underway, given its substantial role in the surge.

(With inputs from agencies.)