Due to a significant fall in demand in the wake of COVID-19 pandemic, Gold imports have dipped 94 percent in the first quarter of 2020. According to the Union Commerce Ministry data, Gold imports have plunged to over Rs 5,160 crore. The import of Gold in the corresponding period last year was about Rs 86, 250 crore (USD 11.5 billion). Silver imports too have dipped to 45 percent to about Rs 4,300 crore (USD 575 million).
The decline in Gold and Silver imports is good in terms of narrowing the trade deficit of India resulting in a current account surplus of USD 0.6 billion for Jan-March quarter against a deficit USD 4.6 billion in the year-ago period. While the import of Gold and Silver has declined, the gem and jewellery export too have declined by about 72 percent in the April-June quarter.