A study on Trend analysis of Import of Gold by India

Kalpana Agrawal, Ankit Budhrani

Abstract


India is the largest consumer of gold in the world and largest importer after crude oil.Gold is a major vehicle of saving for large number of low and middle income households in rural and urban areas. India is the most rare country in the world, who do trade of export as well as import of gold at a high level. There has been an almost sustained rise in the international gold prices since 2002, with just one deep correction in 2008 and 2013. As gold is an integral part of savings of a large number of investors, this has raised apprehensions whether any correction in gold  prices will have destabilizing implications on the financial markets. As the domestic production of these precious metals is negligible compared to their rising consumption, India has been importing hundreds of tons of gold every year. India is stepping up import of Gold this fiscal due to rising demand for the noble metal. Huge gold imports have put pressure on current account deficit (CAD)which in turn affecting the value of rupee. And in such a situation even Finance Minister recently made request to Indians that they should resist the temptation to buy gold for a year at least as rupee has become very weak against dollar. In this backdrop, the paper makes an attempt to analyze the trend of import of gold by India from various countries like U.K.,U.S.A, China, U.A.E, Afghanistan. The present research is secondary data based and five years data were taken to comprehend the trend of import of gold from various countries.


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ISSN : 2251-1555