Economy

GJEPC: India’s Gold Imports Reached Pre-COVID Level in 2021

The Gem Jewellery Export Promotion Council (GJEPC) said that India’s gold imports reached 1,067 tonnes in 2021 from 430 tonnes during 2020, the year in which the COVID-19 pandemic demand dipped the demand. It also stated that the gold imports in 2021 were up by 27% from 836 tonnes during 2019.

The country-wise gold imports in 2021 were:

  • Switzerland: 469 tonnes
  • UAE: 120 tonnes
  • South Africa: 71 tonnes
  • Guinea: 58 tonnes

GJEPC Chairman Mr Colin Shah stated that the increase of gold imports in 2021 can be attributed to the abnormal pandemic in 2020 when the imports had reduced to 430 tonnes.

He added that India’s gold imports are reaching to pre-COVID level. For instance, the gold imports in 2021 are close to gold imports of 1,047 tonnes in 2015 and 1,032 tonnes in 2017.

India’s average monthly gold imports during April-February of 2021-22 fiscal stood at 76.57 tonnes, which is at par with the average gold imports in the same period in 2018-19 and 2019-20.

During April-February this fiscal year, gold imports stood at 842 tonnes, lower than the same period, i.e. ranging from 690 to 890 tonnes.

GJEPC added that there isn’t much deviation in the gold imported in January and February 2022 from the average gold imports in value and quantity during the same period in the previous three years, 2017-2018, 2018-2019, and 2019-2020.

Also, the gold jewellery exports from India rose by 50% and reached USD 8,807 million in 2021 compared to the previous year’s imports worth USD 5,876 million.

The studded gold jewellery exports increased sharply to USD 5,078 million in 2021 compared to the previous year’s exports worth USD 2,508 million. Also, the exports of plain gold jewellery increased to USD 3,728 million against USD 33,69 million.

GJEPC Chairman said they are witnessing a recovery from the pandemic effect in gold imports/exports. There was a shortage of gold in 2020 due to the restrictions in crucial sourcing countries that resulted in de-stocking by the country’s jewellery manufacturers. However, with the ease of transport restrictions in 2021, the supply of gold was increased, and jewellery manufacturers in India could replenish their exhausted stock.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@cleartax.in

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