2021 Gold Import in India

India reported a record $55.7 billion on gold imports in 2021. India bought more than double tonnage, as compared to previous tonnage, as a price drop favoured retail buyers.

Key Facts

  • 2021 gold import bill got doubled the $22 billion, which were spent in 2020.
  • It also surpassed the previous high set in 2011. In 2011, $53.9 billion gold import was reported.
  • India imported 1,050 tonnes of gold in 2021, in volume term. It is far more than 430 tonnes import in 2020.

Why gold import increased?

In the year 2020, demand was robust because lot of weddings were postponed to 2021 amid the covid-19 pandemic. Strict lockdown during the first wave of covid-19 pandemic in 2020 had hit the gold demand.

Which act control the sale and holding of gold in India?

Indian Parliament had repealed the “Gold (Control) Act, 1968” and was enacted to control sale and holding of gold in personal possession.

Gold Import Policy in India

In India, there is a high demand for gold and negligible indigenous production. This result in high gold imports, which in turn lead to drastic devaluation of Indian rupee and depletion of foreign exchange reserves. Thus, India has its gold import policy with the aim of curbing gold imports to a manageable legal restriction.

Restrictions on gold imports

Indian entities are mandated to import gold in the form of gold bars. While, Reserve Bank of India (RBI) have prohibited the form of coins and medallions. Imports of the yellow metal can be routed only through custom bonded warehouses. One entity is prohibited to import more than 10 kg of gold (including ornaments) per passenger.

Largest gold exporter to India

Switzerland, Saudi Arabia, and China are the largest exporter of gold to India. India also imports Gold from Dubai. Switzerland has strengthened its position as India’s most significant import partners due to increasing gold imports. It has replaced Saudi Arabia to become 4th largest import partner of India.

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