Mumbai: India earned a record $55.7 billion gold import In 2021, more than double the tonnage of the previous year as prices fell in favor of retail buyers and increased demand for weddings, when the pandemic first hit.
Previously unreported details of the rising imports from the world’s second-largest consumer nation were disclosed to Reuters by a senior government official, who requested anonymity because he was not authorized to speak to the media.
According to an official tracking broader import trends, the gold import bill for 2021 easily doubled from the $22 billion spent in 2020, and surpassed the previous high of $53.9 billion in 2011. In terms of volume, India imported 1,050 tonnes of gold in 2021, the highest in a decade, and over 430 tonnes in 2020, the official said.
While global bullion prices were supported by strong demand in India, outlay on imports would have put pressure on the country’s ailing rupee.
Harshad Ajmera, a Kolkata-based gold wholesaler, said, “Last year the demand was strong as a lot of weddings were postponed from 2020 to 2020.
Indian authorities imposed strict lockdowns in 2020 during the first wave of the pandemic, with demand for gold during the wedding season and buying gold during major festivals such as Akshaya Tritiya considered auspicious.
In India, gold is considered an essential part of a bride’s dowry and is also a popular wedding gift.
Ajmera said the price correction made earlier last year has made gold more affordable for retail consumers in India.
Local gold prices hit a record high of Rs 56,191 per 10 grams in August 2020, but fell to Rs 43,320 in March 2021, when monthly imports hit a record 177 tonnes.
Previously unreported details of the rising imports from the world’s second-largest consumer nation were disclosed to Reuters by a senior government official, who requested anonymity because he was not authorized to speak to the media.
According to an official tracking broader import trends, the gold import bill for 2021 easily doubled from the $22 billion spent in 2020, and surpassed the previous high of $53.9 billion in 2011. In terms of volume, India imported 1,050 tonnes of gold in 2021, the highest in a decade, and over 430 tonnes in 2020, the official said.
While global bullion prices were supported by strong demand in India, outlay on imports would have put pressure on the country’s ailing rupee.
Harshad Ajmera, a Kolkata-based gold wholesaler, said, “Last year the demand was strong as a lot of weddings were postponed from 2020 to 2020.
Indian authorities imposed strict lockdowns in 2020 during the first wave of the pandemic, with demand for gold during the wedding season and buying gold during major festivals such as Akshaya Tritiya considered auspicious.
In India, gold is considered an essential part of a bride’s dowry and is also a popular wedding gift.
Ajmera said the price correction made earlier last year has made gold more affordable for retail consumers in India.
Local gold prices hit a record high of Rs 56,191 per 10 grams in August 2020, but fell to Rs 43,320 in March 2021, when monthly imports hit a record 177 tonnes.
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