India’s gold trade shone brightly in October, with imports more than doubling to $5.1 billion and exports of gems and jewellery rising by over 44 percent to $4.2bn over the corresponding month of 2020, according to the latest official data.
The UAE is the largest export market for gold jewellery from India, accounting for more 75 percent of the country’s total exports, while the Gulf country is the second largest exporter of gold to India.
India’s gold imports in October 2020 were down at $2.5bn, mainly as a result of the sharp fall in demand due to the pandemic-induced lockdown and mobility restrictions in the country.
Besides the yellow metal, India’s crude oil imports also vaulted by a whopping 140 percent in October to $14.4bn over the same period a year ago. West Asia, including Saudi Arabia and the UAE, is the largest source of crude imports by the South Asian country.
Industry officials attributed the reasons for the surge in gold imports to the pent up demand, combined with current festival and wedding season purchases of gold jewellery.
Demand pick-up in the Dubai gold market – billed as the world’s gold capital – is said to be what is pushing up the jewellery exports from India.
Gold accounted for 9.2 percent, while the crude and petroleum products accounted for a larger 26.06 percent in India’s overall imports basket last month, which saw a jump of 62.5 percent to $55.37bn.
Indian Bullion and Jewellers Association national secretary Surendra Mehta (pictured above) told Arabian Business recently that the rising domestic demand and also the current surge in India’s exports of jewellery would be pushing up increased requirements for imports in the coming months.
India’s overall merchandise exports in October is estimated at $35.47bn, up by 42.33 percent from $24.92bn in October 2020. The country’s exports during April-October 2021 stood at $232.58bn, an increase of 54.51 percent over the corresponding year ago period.
Federation of Indian Export Organisations (FIEO) president A Sakthivel said the impressive double-digit growth of more than 42 percent in India’s exports was a result of the opening up and further recovery of economies across the globe.
The UAE is currently India’s third-largest trading partner with bilateral trade in FY20 valued at $59bn. The UAE is also India’s second-largest export destination after the US, with exports valued at approximately $29bn in FY20.
The UAE and India launched negotiations in late September for a Comprehensive Economic Partnership Agreement (CEPA), with an early harvest to be concluded by the end of December.
The proposed economic agreement is expected to increase bilateral trade in goods to $100bn within five years.
Follow us on
