Gold imports jump 62.2% to $2.96 billion in July

New Delhi: After declining in June, Gold imports jumped 62.2 percent to USD 2.96 billion last month, a development which will have adverse bearing on India's current account deficit (CAD).

Imports of the precious metal stood at USD 1.82 billion in July, 2014. In June this year, the imports dipped 37 per cent to USD 1.96 billion.

The growth in gold imports has pushed the country's trade deficit to an eight month high of USD 12.81 billion in July.

India is the largest importer of gold in the world, which mainly caters to the demand of the jewellery industry.

Current account deficit happens when value of import of goods and services is more than that of exports.

The CAD in 2014-15 shrank to 1.3 percent of GDP (USD 27.5 billion) from 1.7 percent (USD 32.4 billion) in 2013-14.

The Reserve Bank and the government have maintained that the CAD level is comfortable.