The ease in the imports of gold and price correction led to the increased attention of the buyers and jewelers. Consequently, this resulted in rising in the imports to 471 percent from the last year which amounts to 160 tonnes.
Moreover, the upsurge of imports may increase the trade deficit of the country. This may take the value of the rupee downward.
As per the source, in the last month quarter, the import in the country amounts to 321 tonnes. It is 124 tonnes more than that of last year.
Additionally, in monetary terms, the imports of worth increased from $1.23 billion last year to $8.4 billion in March.
In February, the import tax declined from 12.5 to 10.75 percent to accelerate the demand for gold. Also, to reduce the unlawful transfer to the country prominently without paying the duties.
According to the report, people reduced the purchase of gold in times of high prices. Instead, they anticipated buying during the price correction.
In March, the price of gold went to the lowest after a year of amount 43,320 rupees per 10 grams.
The retail demand for gold rose. As a consequence, the jewelers prepared themselves by arranging inventories. Also, the buying executed on the premium amount with the rise in the demands.
Nonetheless, the demand for the gold may decline the current month as there might be a chance of lockdown imposition. The rising cases of the covid-19 virus may cause the government to take strict action of announcing the lockdown.
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