Gold imports, which have a bearing on the country’s current account deficit (CAD), zoomed to $6.3 billion in April because of a surge in domestic demand, according to commerce ministry data.
Silver imports during the month, however, dipped 88.53 per cent to about $11.9 million.
Gold imports stood at $2.83 million (Rs 21.61 crore) in April 2020, the data showed.
The rise in gold imports pushed the country’s trade deficit to $15.1 billion in April 2021 against $6.76 billion in the same month a year ago.
According to industry experts, increasing domestic demand is pushing up imports of gold. However, the second wave of Covid-19 may impact demand in the coming months. Akshaya Tritiya, a highly auspicious day to purchase gold, also saw muted sales with the new pandemic wave and resultant restrictions and partial lockdowns hitting consumer sentiment.