Gold imports rise 19% in financial year 2017-18

(April 4, 2018 - by The Times of India)

AHMEDABAD: Gold demand saw a revival in the financial year 2017-18, over the preceding fiscal, 2016-17, according to analysts. In fact, the import of the yellow metal stood at 74 metric tonnes (MT) in FY2017-18, increasing from 62 MT in FY2016-17, an increase of 19% year-on-year.

Jewellers said that gold jewellery demand has remained buoyant throughout the year. “Sales were significantly good during this financial year. The festive season and wedding season remained upbeat in terms of gold jewellery demand,” said Manoj Soni, a city-based jeweller. “And we recorded at least 10% increase in sales over the previous season.”

A few jewellers attributed the increase in imports to the hefty gold jewellery purchases made ahead of the implementation of Goods and Services Tax (GST). “Gold sales remained buoyant ahead of GST implementation and gave us good business till June,” said another city-based jeweller. “Hefty purchases were made fearing a rise in prices of gold and gold jewellery after the GST implementation. Even after the new tax regime, sales were upbeat after Navratri.”

The price of the yellow metal settled at Rs 31,200 per 10g including GST on Monday. “Gold prices have remained more or less stable throughout the fiscal and this encourages those who invest in gold,” said Surendra Mehta, secretary, Indian Bullion and Jewellers Federation.

“Investments in gold have gone up. This also contributed to upbeat gold sales throughout the fiscal,” said Haresh Acharya, secretary, National Bullion Federation.