According to government data, the country's gold imports, which affect the country's current account deficit (CAD), rose by 21.78 percent to USD 27 billion during April-September this fiscal year due to strong domestic demand.
The imports stood at USD 22.25 billion in April-September 2023-24.
An industry expert said that the ongoing festival demand is helping increase imports.
In 2023-24, India's gold imports surged 30 per cent to USD 45.54 billion.
Switzerland is the largest exporter of gold, with about 40 percent of the market, followed by the UAE (over 16 percent) and South Africa (about 10 percent).
The precious metal accounts for over 5 per cent of the country's total imports.
The jump in gold imports pushed the country's trade deficit (difference between imports and exports) to USD 137.44 billion during the first half of the current fiscal compared to USD 119.24 billion during April-September 2023.
India is the world's second-biggest gold consumer after China. The imports mainly take care of the demand by the jewellery industry. These shipments declined by 10.89 per cent to USD 13.91 billion during April-September 2024-25.
The country's CAD widened marginally to USD 9.7 billion or 1.1 per cent of GDP in April-June 2024 against USD 8.9 billion or 1 per cent in the year-ago period.
A current account deficit occurs when the value of goods and services imported and other payments exceeds the value of the export of goods and services and other receipts by a country in a particular period.
Silver imports soared 376.41 per cent to USD 2.3 billion during the first half of this fiscal from USD 480.65 million in April-September 2023-24, the data showed.
In the Budget, the government slashed the customs duty from 15 per cent to 6 per cent.
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