(Scrap Register, Mumbai) – Precious metal imports rose by 89.7% year-on-year in May 2013 while exports declined 1.1% in the same period.
S R Rao, India’s commerce Secretary stated that gold and silver imports rose sharply to reach $8.39 billion in May 2013, recording an increase by 89.7% compared to May last year. He said that India bought more than double the quantity of gold and silver bought last year in the same period.
On the other hand, India’s exports declined by 1.1% year-on-year to reach $24.5 billion in May. According to the RBI, the current account deficit reached 6.7% of the country’s GDP. Rao stressed on the Indian government point of view, which is gold and silver imports are the main reasons behind the country’s current account deficit.
The total amount value of gold and silver imports in April and May this year was $86.60 billion while it was $79.54 billion in the same period last year, recording an increase by 8.88%.
The Reserve Bank of India (RBI) took several measures during the past six months to curb gold imports. These actions haven’t shown an effect yet as they started to escalate in May and should show influence on June’s numbers. It is hard to prevent the Indian populace from having gold, especially if it represents religious, social and economic significance.