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What is the News?
The World Gold Council (WGC) has released a report titled ‘Bullion Trade in India’.
What are the key findings of the report?
India’s Gold Imports
India is the world’s second-largest gold consumer. However, the country is heavily dependent on imports to fulfil this demand.
Over the five-year period 2016-2020, imports made up 86% of India’s gold supply. Higher gold imports can have a negative impact on the country’s balance of trade.
Gold Import Locations
In 2020, India imported 377 tonnes of gold bars and dore from over 30 countries, of which 55% came from just two countries — Switzerland (44%) and the UAE (11%).
| Read more: DRI seizes of 85.535 kg gold, apprehends 4 foreign nationals in Operation “Molten Metal” |
Increase in Gold Doré Imports
One important change that has taken place in India’s gold market is the growth in gold doré imports. The increase in doré imports reflects the government’s accommodative stance towards gold refining.
| Note: A doré bar is a semi-pure alloy of gold and silver. It is usually created at the site of a mine and then transported to a refinery for further purification. |
Source: This post is based on the article “Imports made up 86% of gold supply in 2016-20, says WGC” published in The Hindu on 10th Dec 2021.
