India Made Highest Gold Import In 2021, Spends Record $55.7 Bln : Govt Source

Reuters reported the undisclosed details of the world's second-biggest consuming nation's soaring imports, as they received inputs from a senior government official who requested anonymity as he was not authorised to speak to media.

In 2021 gold import bill got doubled the $22 billion spent in 2020, and surpassed the previous high, which was set in 2011, of $53.9 billion, according to the official, who tracks broad import trends.

In terms of volumes, India imported 1,050 tonnes of gold in 2021, making the highest record in a decade, and far more than the 430 tonnes imported in 2020, Reuters quoted the official.

While global bullion prices drew support from the strong demand in India, the outlay on imports would have added to pressure on the country's ailing rupee.

"Last year demand was robust as lots of weddings were postponed to 2021 from 2020 because of the coronavirus outbreak," Reuters quoted Harshad Ajmera, a gold wholesaler in Kolkata.

Due to strict lockdowns during the previous waves of the Covid in 2020, the demand of gold was considerably low even during the wedding season and key festivals such as Akshaya Tritiya, when buying gold is considered auspicious. Gold has always been a popular wedding gift in India.

But a price correction had made gold more affordable for retail consumers in India in 2021.

Local gold prices hit a record high of 56,191 rupees ($754) per 10 grams in August 2020 but fell back to 43,320 rupees in March 2021, when monthly imports spiked to a record 177 tonnes.

In December India imported 86 tonnes of gold, slightly more than last year's 84 tonnes, the government official said.

Gold imports could moderate in January as rising coronavirus cases have prompted local authorities to impose restrictions, said a Mumbai-based bullion dealer.

"Jewellers are afraid of lockdown. They have scaled-down purchases," the dealer said.

(With inputs from Reuters)