(Mineweb) Higher gold imports have been curtailing the government’s efforts to stem the yawning gap in the country’s current account deficit. However, jewellers in the country are already facing the music, given the extremely perilous situation with low gold stocks and correspondingly high premiums of around $40 per ounce or more.
India has been the world’s biggest consumer and importer of gold, and most purchases are an essential part of Indian weddings and religious festivals. The country’s purchases of gold and silver shot up 138% in April to $7.5 billion, the highest so far this year, pushing up the country’s trade deficit to $17.7 billion. India had imported just 471 tonnes in 2000-01.
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