India's gold imports hit multi-year high

According to official trade data released by Gujarat Export Corporation Limited (GSECL), imports of gold bullion by the state hit their highest level in four years during the 2014-2015 fiscal year, which was primarily due to the relaxation of import regulations on gold from the new government.

According to trade data, total gold imports for the fiscal year ended March 2015 stood at 152.24 tonnes. Imports have grown significantly this year. The increase was 66.79 percent compared to the import of 91.27 tons of gold bars recorded during the previous year. Gold imports in March 2015 soared to 20.73 tons.

Last May, the government announced the lifting of the restriction on gold imports, allowing goldsmiths to be provided with gold as loans for domestic use and bullion traders. Consequently, the domestic gold price in the country fell sharply. At the same time, gold prices in foreign markets also remain low. Domestic demand for gold has been robust throughout the past fiscal year. According to GSECL, the growth in gold imports is a clear indicator of the country's economic recovery.

On the other hand, government imports of silver declined during 2014-2015. The state's imports of silver bars for the past financial year amounted to 625 tons, which is 56.15 percent lower than the import of 1425.11 tons during 2013-2014. Falling demand for silver from the industrial sector reduced supplies during fiscal 2015, GSECL noted.