Gold imports dip about 8% in 2015-16
However, the import of gems and jewellery grew in the month.
Gold imports declined by about 8% to $31.72 billion (nearly Rs 2.11 lakh crore) in 2015-16 due to weak global prices and are expected to keep a lid on the country's current account deficit.
Gold imports stood at $34.38 billion (nearly Rs 2.29 lakh crore) in 2014-15.
The sliding prices of the precious metal in both global and domestic markets are seen as a contributory factor for the plunge.
In March, the imports dipped for the second consecutive month. It fell by 80.48% to $972.96 million (nearly Rs 6,472.8 crore)
The contraction in the imports helped narrow trade deficit to five-year low of $5.07 billion (nearly Rs 33,729.4 crore) last month. The deficit was at $11.39 billion (nearly Rs ​75,774.8 crore) in the year-ago period.
India is the largest importer of gold in the world and the imports mainly cater to the demand of jewellery industry.
India's current account deficit (CAD) narrowed to 1.3% of GDP in third quarter of the fiscal 2015-16 as against 1.5% in the same period previous year, mainly on account of lower trade deficit.
Dip in gold imports have impacted the exports of gems and jewellery. Gems and jewellery export grew by just 4.6% in March to $3.61 billion nearly Rs 24,016.4 crore.