Lok Sabha Question No. 3934 (UNSTARRED), answered on 2018-08-10
Subject: Import of Gold
Ministry: FINANCE
Asked by: CHANDRAKANT BHAURAO KHAIRE

## GOVERNMENT OF INDIA I{INISTRY  OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

LOK SABHA UNSTARRED  QUESTION  No. 3934

TO BE ANSWERED  ON: Friday, August 10, 2o18/Shravana 19, 1940 (Saka)

## IMPORT OF GOLD

## OUESTION

## +3934. by SHRI CHANDRAKANT KHAIRE:

Will the Minister  of FINANCE  be pleased  to state:

- (a) whether  the import of gold has registered 25 per cent decrease in the first quarter of current financial year;
- (b) if so, the details thereof  and the reasons therefor;  and
- (c) the details of the import  of gold  during the last three  years, year-wise?

## ANSWER MINISTER OF STATE Iil THE i,IINISTRY  OF FINANCE

(Shri P. Radhakrishnan)

- (a) & (b) As per India's gold import data shown below, the import of gold has registered approximately  25olo decrease in the first quarter  of current financial year in comparison  of the gold imports  in the corresponding  quarter  of the last financial year 2017-18.

(Value  in US  $  million)

| Month                                     | 2017-18 (Apr-June)   |   2018-19(Apr-June)* |   o/oGrowth |
|-------------------------------------------|----------------------|----------------------|-------------|
| April                                     | 3853                 |                 2580 |       -33.1 |
| May                                       | 4959                 |                 3479 |       -29.8 |
| June                                      | 2455                 |                 2385 |        -2.8 |
| Total import of gold in the first quarter | 1L266                |                 4444 |       -25.1 |

Source: DGCI&S, Kolkata (*Provisional)

The reasons considered  for lower imports are as follows:

- (i) weaker Indian Rupee (INR) resulted into higher local prices  of gold which dampened fresh purchases from manufacturers and retailers.
- (ii) High imports in April and May 20t7 (245.8 tonnes)  ahead of GST due to fear of higher GST on gold.
- (iii) Sufficient inventory/stock  of both bullion and fabricated jewellery  providing little incentive for banks and retailers/fabricators  to make fresh purchases.

In addition  to above, government  has also introduced the following measures  to restrict  the import of gold in the country:

- (i) Imposition of restriction on duty free gold import from the South Korea as allowed under the existing India-Korea CEPA.
- (ii) Imposition  of self-use condition on Premiere Trading House/star  Trading House authorized to import precious metal (gold) directly from overseas  bullion supplier  (DGFT Notification  No. 3412015-20  dated 18.10.2017).
- (iii) Issuance  of rrade Notice by DGFT for grant of license for import of Gold to the refinery who holds a valid license from BIS (DGFT Trade Notice No. 4 dated 2l.o4,zol7 and No. 14 dated 24.O8.2017).
- (iv) Restriction  imposed on export of gold jewellery  and articles, including medallions and coins (excluding legal tenders)  of purity above 22 carats. (DGFT Notification No. 2L/2OL5-2O dated 14.08. 2017)
- (c) The details of the import  of gold  during the last three years, year-wise are as under:

| Year   | Quantity in l{etric Ton   | Value in Million USD   |
|--------|---------------------------|------------------------|
| 968    | 3L771                     | 2015-16                |
| 780    | 275L8                     | 20L6-t7                |
| 9s5    | 33657                     | 20L7-tA                |