India's gold imports in July plunged 55% from a year ago to the lowest level in three years as a rally in local prices to a record high and a hike in import taxes curtailed demand.
India imported 39.66 tonnes of gold in July, down from 88.16 tonnes a year ago. In value terms, the country's imports in the month fell 42 per cent to $1.71 bln.
Local gold prices jumped to record high last month tracking gains in overseas market and as Indian Government raised import taxes on the precious metal to 12.5 per cent from 10 per cent earlier.The surprise hike in the import tax and price rise badly affected demand last month.
According to industry members, even in August, imports would be much lower than last year as demand is not improving. As retail demand has dried up, jewellers are placing import orders with banks. India's gold demand is likely to soften in the September quarter as record high local prices curtail buying.
India imported 39.66 tonnes of gold in July, down from 88.16 tonnes a year ago. In value terms, the country's imports in the month fell 42 per cent to $1.71 bln.
Local gold prices jumped to record high last month tracking gains in overseas market and as Indian Government raised import taxes on the precious metal to 12.5 per cent from 10 per cent earlier.The surprise hike in the import tax and price rise badly affected demand last month.
According to industry members, even in August, imports would be much lower than last year as demand is not improving. As retail demand has dried up, jewellers are placing import orders with banks. India's gold demand is likely to soften in the September quarter as record high local prices curtail buying.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
