Gold imports dip 59.5% to $1.7 billion in October

Gold imports plunged by 59.5% to $1.7 billion in October which will help curb the country's Current Account Deficit (CAD).

The sliding prices of the yellow metal is one of the reasons for a dip in imports. The prices are declining in both global and domestic markets.

The gold imports stood at $4.20 billion in October 2014.

The contraction in imports helped in narrowing the trade deficit to $9.76 billion in October, lowest since February. It was $6.85 billion in that month.

This year, the imports of the yellow metal were up 62.2% and 140% in July and August, respectively. In September, the inward shipments declined by 45.6%.

India is the largest importer of gold in the world. The imports mainly cater to the demand of jewellery industry.

In 2014-15, gold was the third largest commodity imported in India after crude oil and electronic items. During that fiscal, the country's imports stood at $34.32 billion.

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