The 2022 financial year saw India’s gold imports increase by 33.34% year-on-year due to higher demand which may have been welcomed by jewellery businesses but added to the country’s widening trade deficit.
India’s gold imports totalled $46.14 billion in the recently concluded 2022 financial year, according to official data sourced by the Press Trust of India. The figure is up from $34.62 billion in the 2021 financial year. The 2022 financial year saw India’s total trade deficit increase to $23 billion. This represented 2.7% of the country’s total gross domestic product for the October 2021 to December 2021 quarter, according to the Reserve Bank of India.
Although gold imports have contributed to India’s trade deficit, the gem and jewellery industry’s total exports did increase significantly in the 2022 financial year, growing by 50% year-on-year to around $39 billion.
Moreover, the Gem and Jewellery Export Promotion Council has been able to restart its international trade show schedule following a break due to Covid-19 international travel restrictions and lockdowns.
The traders body has planned numerous international-facing trade shows for the 2023 financial year including three dates for the India International Jewellery Show which it expects to contribute to increased exports.