Gold imports between January and September have gone up 28 per cent to 653 tonnes. With an additional 150 tonnes expected to be shipped in during the festive quarter of October-December, gold imports are set to cross the 800-tonne mark, raising concerns about widening trade deficit.

In the September quarter, imports rose 81 per cent to 145 tonnes against 80 tonnes in the same quarter last year, as per the provisional data from precious metals agency GFMS.

With Navrathri festival falling in September this year, the monthly imports rose 31 per cent to 48 tonnes, said Sudheesh Nambiath, lead analyst, precious metals demand, South Asia and UAE, GFMS. Last year Navrathri festival was celebrated in October.

In August, imports stood at 45.2 tonnes and duty-free imports from South Korea had contributed to increased shipments. According to traders, around 20 tonnes of gold were imported from South Korea.
Imports from Korea, which had entered into a Comprehensive Economic Agreement with India a few years ago, turned duty-free. However, the demand for gold was less in August as the government had brought the metal under the Prevention of Money Laundering Act (PMLA).

In July, the imports stood at 51.8 tonnes as some of the orders given earlier to meet the pre-GST demand got delayed.

Nambiath expects the country to import 150 tonnes more in the December quarter.

“We are expecting an increase in demand for both gold and diamond jewellery this Dhanteras. The announcement of PMLA’s withdrawal is a big relief and the timing is right – just before Diwali. Keeping favourable factors in mind, we are expecting at least 20-25 per cent increase in sales this Dhanteras,” said Ishu Datwani, founder, Anmol Jewellers. This will take the total official imports to more than 800 tonnes.