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Informist, Thursday, Dec. 19, 2024

 

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--Govt sources: Likely error in Nov import data casts doubt on full yr's data 
--Govt sources: Need to revisit trade data for commodities other than gold 
--Govt sources: Aug gold import of $10 bln may also be due to miscalculation 
--Govt sources: May set up team to review trade data for FY25 so far 
--Govt sources: Massive revision likely in FY25 trade data 
--CONTEXT: Reports said unusual surge in Nov gold imports due to data error 
 

 

By Krity Ambey

 

NEW DELHI – To address concerns over miscalculation in the gold import data for November, the government is likely to set up an internal team to re-examine all the trade data prints that have been released for the current financial year so far, two officials aware of the matter said. The team will consist of representatives from multiple ministries including from commerce, finance, and statistics, the officials said. There is a possibility of a large revision in the trade data for 2024-25 (Apr-Mar) reported so far, as the inaccuracy in calculating the trade numbers may have taken place earlier in the year, one of the officials said.

Data shows that India's gold imports surged to a record high of $14.8 billion in November. According to a Bloomberg report on Wednesday, the unusual surge was caused by an error in calculation. 

While the commerce ministry's Directorate General of Commercial Intelligence and Statistics is undertaking a detailed examination of the gold import data for November, the possibility of a discrepancy raises questions over the data for the entire year, as well as for other commodities like silver, the officials quoted above told Informist. India's import of silver jumped 36% in November to $656.61 million. For Apr-Nov, India imported silver worth $3.28 billion, up 44% on year, data showed.  

 

The error in calculation of gold imports was due to double counting of the data after a change in methodology on implementation of the Indian Customs Electronic Data Interchange Gateway, or ICEGATE, for Special Economic Zones in July, Bloomberg reported Wednesday. Until June, two different systems handled bills of entry for imported goods. The Department of Commerce's SEZ online system processed bills for goods stored in warehouses or bonded areas, which aren't considered official imports. Meanwhile, the ICEGATE system handled bills for goods intended for domestic consumption, which are considered actual imports. From July onwards, ICEGATE  consolidated both types of data into a single system, streamlining the process and enabling faster data sharing.

 

There is a chance that the gold import data for August, which was reported to have touched a record high of $10 billion, was also due to a miscalculation, according to the officials. It was assumed that the surge in gold imports for August was on account of a duty cut. The government in July sharply cut the customs duty on gold bars to 6% from 15%.  

 
As the case was in November, when record high inbound shipments of gold pushed India's merchandise imports to an all-time high of $69.95 billion, gold imports had led to a sharp rise in the country's import bill in August as well.

Although the Directorate General of Commercial Intelligence and Statistics keeps revising the trade data around the year, the revisions have not been very large so far. For Apr-Nov, India's merchandise trade deficit was $202.42 billion, higher than $170.98 billion a year ago. Exports in the first eight months of FY25 totalled $284.31 billion, up 2.2% on year, while imports rose 8.3% to $486.73 billion during this period.  End

 

US$1 = INR 85.07

 

Edited by Tanima Banerjee

 

 

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