Gold drives trade deficit to new high

Source: The post is based on the article “Gold drives trade deficit to new high” published in “The Hindu” on 15th November 2023

Why in the News?

In October,2023 India’s exports increased by 6.2% to $33.6 billion, but imports surged to a record $65.03 billion, leading to highest monthly trade deficit of $31.46 billion. This happened due to increase in import of gold and other commodities like oil and electronics.

Why has Gold imports increased?

The sharp increase in gold imports could be because of the rise in domestic demand for gold jewellery due to the festive season.

What is the data on Gold Production worldwide and in India?

1)Global Gold Production: China is the largest gold producer. The other major countries are Australia, Russia and the United States.

– India’s share in the global gold production is less than 0.05%.

2)Gold Reserves in India:The largest resources of gold ore (primary) in India are located in Bihar (44%) followed by Rajasthan (25%), Karnataka (21%), West Bengal (3%), Andhra Pradesh (3%) and Jharkhand(2%)

3)India’s Gold Market: Gold supply in India is primarily met through imports.

– The countries from which India imports most of its gold are Switzerland and UAE.

UPSC Syllabus: Indian Economy