press trust of india, New Delhi, June 16: Gold imports grew 10.47 per cent to USD 2.42 billion in May on declining prices and easing of restrictions by RBI. Imports of the precious metal stood at USD 2.19 billion in the same month of 2014.
In April this year, the imports grew 78.33 per cent to USD 3.13 billion. Any increase in gold imports impacts the current account deficit (CAD).
CAD in the first half of last fiscal declined to 1.9 per cent of GDP (USD 18 billion) from 3.1 per cent (USD 27 billion) in the same period of the previous year. The Reserve Bank of India and the government have maintained that the CAD level is comfortable, but the jump in gold imports may spark fresh worries.
In November last year, RBI had scrapped the controversial 80:20 scheme. Under the programme, which was put in place August 2013 to keep a tight leash on gold inflows, at least 20 per cent of imported gold had to be exported before bringing in new lots. India is the largest importer of gold, which mainly caters to the demand of the
jewellery industry.
