In India, gold imports have returned to the pre-Covid levels. 

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Mumbai (Maharashtra) [India], October 20: On the back of strong festive and export demand, imports of gold have recovered to the pre-Covid levels.

Gems and Jewellery Export Promotion Council (GJEPC) reports that the average value of gold imported during April-September 2021 stood at 72.16 tones to $3992 million, up around 40% compared to fiscal years 2017 to 2019.

However, for the same period, the average gold imports of 72.16 tones were at par with average imports during the past 3 years—80.51 tones in 2017-18, 87.92 tones in 2018-19, and 70 tones in 2019-20.

Gold imports in May and June 2021 were severely hit by the second devastating Covid wave that resulted in nationwide lockdowns and paralyzed several industries for a brief period including gem and jewellery.

In May gold imports dropped to a six-month low of 12.98 tones far below the usual figure of 100 to 135 tones (2017-18 to 2019-2020). Similarly in June 2021, the import of gold was at 17.57 tones and US$969.87 million as compared to the usual imports of around 70 tones of the value around US$2.5 billion in the usual scenario.

Gold imports picked up in August which recorded the second-highest gold imports of 118.08 tonnes.

Colin Shah, Chairman, GJEPC said, “Average imports of gold during April-September 2021 i.e. US$3992.34 million are relatively more than the average gold imports in the previous years, due to surging gold prices and rise in the exchange rate. However, on the whole, there is no deviation in the gold imported in July, August, and September from the average imports of gold (in quantity) during the same period in the previous 3 years.”

“The increase in the imports during July, August, and September 2021 is due to the lifting of lockdowns, revival of the domestic and export demand, and the start of the festive season which has resulted in the sharp rise in demand of G&J products and along with the imports of gold. Additionally, we witnessed strong demand for gold jewellery, especially the bridal segment, at the IIJS Premiere in Bengaluru.” Colin said.

“We expect that imports of gold will further rise in the forthcoming months as peak festive/wedding season will further boost the demand for jewellery both at home and key international markets,” Colin added.