Gold imports, which have a bearing on the current account deficit, declined 40 per cent to $12.3 billion during April-November because of a fall in demand in the wake of the Covid-19 pandemic, according to data from the commerce ministry.

Imports of the yellow metal stood at $20.6 billion in the corresponding period of 2019-20.

The imports, however, recorded a year-on-year growth of 2.65 per cent in November to $3 billion.

Silver imports during April-November 2020, too, dipped 65.7 per cent to about $752 million.

The decline in gold and silver imports has helped in narrowing the country’s trade deficit, the difference between imports and exports, to $42 billion during April-November 2020-21 against $113.42 billion in the year-ago period.

India is the largest importer of gold, which mainly caters to demand of jewellery industry. In volume terms, the country imports 800-900 tonnes of gold annually.

Gems and jewellery exports declined 44 per cent to $14.30 billion during the first eight months of the current fiscal.