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Informist, Tuesday, Apr. 22, 2025

 

By Sandeep Sinha

 

MUMBAI – Despite an uptick in March, India's import of gold in Jan-Mar fell to its lowest level in 16 years on rising prices. A short-term fall in prices and restocking by jewellers ahead of the imposition of tariffs by the US pushed up gold imports in March, traders said.

 

In the first quarter of 2025, imports were seen at just 113.0-118.0 tonnes, down from 172.9 tonnes in the corresponding period last year. The lowest first-quarter import was recorded in 2009 and the highest in 2021, when the country bought 74.4 tonnes and 345.0 tonnes of gold, respectively.

 

"India's gold imports in March rose to 45–49 tonnes from 33.7 tonnes a year earlier, driven by restocking ahead of the wedding season and anticipation of higher tariffs ahead of the US announcement on Apr. 2," said Prithviraj Kothari, managing director of RiddiSiddhi Bullions. "Anticipating disruption in the gems and jewellery sector--India's largest segment of export to the US--jewellers accelerated gold purchases to fulfil pending orders and mitigate future cost increases."

 

Surendra Mehta, national secretary at the India Bullion and Jewellers Association, said imports shot up in March because of a slight decline in prices from Mar. 21-26 as well as festive and wedding demand.

 

Gold has been the top performer across asset classes in Jan-Mar, with its price having risen INR 13,372 per 10 grams, or 17.4%, to INR 90,120 per 10 gm on the Multi Commodity Exchange of India and $484.30 an ounce, or 18.2%, to $3,150.30 an ounce on COMEX. So far this year, gold has gained nearly 29.0% on MCX and 30.5% on COMEX because of safe-haven demand and continued weakness in the dollar.

 

Mehta said gold imports in the March quarter fell because of higher prices. The sale of jewellery has dropped 20.0-25.0%, which is reflected in reduced gold imports, he said. However, investment demand remains robust, he added.

 

"This decline (in gold imports) is attributed to record-high gold prices, reaching INR 90,450 per 10 grams, which deterred consumers and jewellers from making significant purchases," said Kothari. "In addition, a weaker rupee increased import costs, further dampening demand."

 

Consequently, many banks and jewellers reduced imports, with some redirecting stocks to markets like the US, which offer better premiums, Kothari added.

 

India imported gold bars worth $404.55 million in March, up 92.3% from a year ago, according to data from the Gem and Jewellery Export Promotion Council. The country imported $24.83 million of gold jewellery last month, down from $194.86 million a year ago, the data showed.

 

Trade data released by the commerce ministry on Apr. 16 showed that the value of gold imports climbed by 192.1% on year to $4.48 billion in March. Monthly provisional trade data released by the ministry provides figures only in value terms.

 

India, the second-largest consumer and importer of gold after China, imported 812.22 tonnes of yellow metal in 2024, up 10.6% from 734.3 tonnes in 2023. The major exporters of gold to India were Switzerland, the United Arab Emirates, Peru, South Africa, Australia, the Dominican Republic, and Hong Kong.  End

 

US$1 = INR 85.18

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Rajeev Pai

 

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