Friday 15 May 2015

India’ S Gold Imports Surpass 100 Tonnes For Second Straight Month

Gold imports by India, the world’s second- largest consumer, exceeded 100 metric tons for a second month in April as easing of state curbs boosted demand for everything from necklaces to bangles and rings.

Shipments totaled 111 tons last month and are about 60 tons so far in May, Revenue Secretary Shaktikanta Das said in an interview in New Delhi on Friday. Imports in March more than doubled to 125 tons from 60 tons a year earlier because of seasonal demand and a drop in prices, according to the finance ministry.

India is set to become the world’s top consumer this year as economic growth accelerates and China’s booming equity markets reduce the appeal of bullion, according to P.R. Somasundaram, World Gold Council’s managing director in India. Jewelry sales surged 22% to 150.8 tons in the first quarter from a year earlier, while imports increased 28% to 226.9 tons, the council said on Thursday.

Shipments into India, which imports almost all its gold needs, totaled 891.5 tons last year to meet demand of 811.1 tons, council estimates. Consumption will rise to between 900 tons and 1,000 tons this year, Somasundaram said.

Demand slowed last year after the government raised the import tax three times in 2013 to 10% and linked inbound shipments to re-exports to contain a record current-account deficit. The restrictions were withdrawn in November after the deficit narrowed. Only the import tax remains.

Source:livemint.com
 



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