Gold imports dip almost 37% to US $1.96 billion in June

Gold imports dipped by almost 37% to US $1.96 billion in June, a development which will help in keeping the current account deficit (CAD) in check.

Imports of the precious metal stood at US $3.12 billion in the same month of 2014. In May this year, the imports were worth US $2.42 billion.

The decline in gold imports helped in narrowing the trade deficit to US $10.82 billion in June as against US $11.76 billion in the same month last year.

India is the largest importer of gold, which mainly caters to the demand of the jewellery industry. However, large imports of gold has also widened the current account deficit, which occurs when value of import of goods and services is more than exports, in recent past.

The CAD in 2014-15 shrank to 1.3% of GDP (US $27.5 billion) from 1.7% (US $32.4 billion) in 2013-14.

The Reserve Bank and the government have maintained that the CAD level is comfortable.