JOIN USIndia's gold and silver imports are expected to have declined substantially to $2-2.5 billion in June following recent steps taken by the government as well as the RBI to curb imports of the yellow metal.
These imports grew 89 per cent to $8.39 billion in May. During the first two months of the current fiscal, April- May, their inward shipments grew 109 per cent to $15.88 billion.
"The steps taken by both, the government and the RBI, have yielded positive results. In June, gold and silver imports are expected to have dipped to $2-2.5 billion," a senior Commerce Ministry official told PTI. Finance Minister P Chidambaram had appealed to people not to buy gold and instead invest in financial instruments.
The official said the decline in imports in June will help bridge trade deficit and current account deficit (CAD).
Trade deficit in May was $20.1 billion, highest in the last seven months. Higher trade deficit puts pressure on CAD, which has been described by the Reserve Bank as the biggest risk to the Indian economy.