According to the Commerce Ministry’s data, the gold import, which has a bearing on the country’s current account deficit (CAD), zoomed to USD 6.3 billion for April due to a surge in domestic demand.
However, the Silver imports dipped by 88.53 percent to about USD 11.9 million in the month. Gold import stood at USD 2.83 million (Rs 21.61 crore) in April 2020, the data showed.
According to industry experts, increasing domestic demand is pushing up imports of gold, however, the second wave of COVID-19 may impact the demand in the coming months.
Akshaya Tritiya, a highly auspicious day to purchase gold, also saw muted sales as compared to pre-COVID numbers, with the new pandemic wave and resultant restrictions and partial lockdowns hitting consumers sentiment.
During the ongoing second wave of the COVID-19 infections, many states have imposed lockdowns or lockdown-like restrictions as a desperate measure to restrict the spread of the virus.