Gold imports into India surged 23% to 100 tonnes in January, the head of the leading trade body here said, as traders snapped up supplies ahead of a hike in duty by a government struggling to rein in its import bill, reported Reuters.
India is the world’s biggest Gold Bullion buyer and the government is trying to curb imports — second only to oil in value — to rein in a current account deficit which hit a record 5.4 percent of gross domestic product in the September quarter.
January’s imports were the highest in 18 months. The government hiked import duty to 6 percent from 4 percent on January 21 after hints from Finance Minister P. Chidambaram on January 2 there could be an increase.
“So many people imported and dumped gold after rumors from the first week of January of an import duty hike. People waited for the duty to increase and earn more profits,” said Mohit Kamboj, president of the Bombay Bullion Association.
In January 2012, gold imports fell 35 percent year-on-year.
Gold imports in 2012 fell 11.25 percent to 860 tonnes, partly a result of a previous tax hike.
India Gold Production is 150 Kgs:
The world’s largest gold consumer, India managed to produce only a paltry 150 kg of gold during December 2012.
According to official figures from the Minerals ministry, gold production gained by 7.9% during the period while diamond production climbed by 14.9% to 2367 carat in December 2012.