The fall in the international market led to a fall in the price of gold and silver in the national capital on Wednesday. Today, the yellow metal fell by Rs 221 to Rs 47,074 per 10 grams in the national capital. According to HDFC Securities, the yellow metal had closed at Rs 47,303 per 10 grams in the previous trading session.
Silver became cheaper by Rs 717
Talking about silver, it fell by Rs 717 to Rs 70,807 per kg. Silver had closed at Rs 71,524 on the previous trading day. In the international market, gold reached $ 1,832 an ounce while silver remained flat at $ 27.38 an ounce.
Gold import reached Rs 2.54 lakh crore in the last financial year
In the last financial year 2020-21, gold imports increased by 22.58 percent to reach $ 34.6 billion or Rs 2.54 lakh crore. Gold imports affect the current account deficit (CAD). According to the Commerce Ministry data, gold imports have increased due to increasing domestic demand. During the fiscal, silver imports fell by 71 percent to $ 791 million. In the previous financial year 2019-20, gold imports stood at $ 28.23 billion. Despite the increase in gold imports, the trade deficit of the country decreased to $ 98.56 billion in the last financial year. It was $ 161.3 billion in 2019-20. Gems and Jewelry Export Promotion Council (GJEPC) Chairman Colin Shah said that gold imports are increasing due to increasing domestic demand.
India is the largest importer of gold
India is the world's largest importer of gold. Gold is mainly imported to meet the demand of the jewelry industry. India imports 800 to 900 tonnes of gold annually by volume. It is known that the government has reduced the import duty on gold from 12.5 percent to 10 percent in the budget.