New Delhi, Jan 29 (PTI) India's gold imports, which have a bearing on the country's current account deficit (CAD), increased 26.7 per cent to USD 35.95 billion during the April-December of this fiscal due to healthy demand, according to government data.

The imports stood at USD 28.4 billion during the same period a year ago.

Also Read | Union Budget 2024-25: What is an Interim Budget? How is It Different From a Regular Budget? All You Need to Know.

In December 2023, imports of the precious metal jumped by 156.5 per cent to USD 3 billion, as per the data released by the commerce ministry.

Despite the increase in gold imports, the country's trade deficit (difference between imports and exports) narrowed to USD 188.02 billion in the first three-quarters of this fiscal against USD 212.34 billion in April-December 2022.

Also Read | Union Budget 2024-25 Expectations For Salaried Taxpayers: From Simplification of Capital Gains to Increase in Section 80C Deduction Limit, Here's What To Expect From Interim Budget.

India is the world's second-biggest gold consumer after China. The imports mainly take care of the demand by the jewellery industry.

The gems and jewellery exports during the period dipped by 16.16 per cent to USD 24.3 billion.

India's current account deficit declined sharply to 1 per cent of the GDP or USD 8.3 billion in the second quarter of this financial year, mainly due to lower merchandise trade deficit and growth in services exports, according to RBI data released on December 26 last year.

A current account deficit occurs when the value of goods and services imported and other payments exceeds the value of the export of goods and services and other receipts by a country in a particular period.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)