New Delhi: India's love of Gold seems to have turned comatose. The situation seems to be evolving although the demand looks to be in the ICU. According to a latest report, the world's second biggest consumer of the yellow metal after China may have probably imported a mere 11 tonnes of Gold in June.
India's imports of Gold for the month of June are reportedly down by 86 percent to 11 tonnes according to a Reuters report citing an unnamed government official. The source is quoted as saying that in value terms June imports dropped to $608.8 million from $2.7 billion a year ago.
Unusually lower gold imports have been attributed to the Coronavirus pandemic and lockdown restrictions. The lockdown and covid-pandemic have already crushed India's gold supply-demand.
Gold imports have consistently waned since the lockdown.
April: India's import was a laughable - 50 kilograms, a thirty year low. Imports in April 2019 stood at 110.18 tonnes. In value terms, April'20 imports were reported at $2.84 million from $3.97 billion a year ago.
May: Imports down to a mere 1.4 tonnes - down by 99 percent from a year ago. In value terms imports in May were estimated at $76.31 million from $4.78 billion a year ago.
India's gargantuan demand of Gold-imports has been criticized for the forex outgo and strain it puts on the Current Account Deficit. Surprisingly, Gold and Diamond jewelleries are among the top-10 items in India's export basket. Therefore, the current statistic implies difficulty for jewellers to sustain. The data also implies challenges for thousands of artisans who depend on work such as jewellery designing and manufacturing.