Why ULIP mis-selling has become rampant ?

New Delhi: Gold import, which has a bearing on the country’s current account deficit (CAD), zoomed to $6.3 billion for the month of April due to a surge in domestic demand, according to the Commerce Ministry data.

Silver imports during the month, however, dipped by 88.53 % to about $11.9 million.

Gold import stood at $2.83 million (Rs 21.61 crore) in April 2020, the data showed.

The rise in gold imports pushed the country’s trade deficit to $15.1 billion in April 2021 as against $6.76 billion in the same month a year ago.

According to industry experts, increasing domestic demand is pushing up imports of gold, however, the second wave of Covid-19 may impact the demand in the coming months.

Akshaya Tritiya, a highly auspicious day to purchase gold, also saw muted sales as compared to pre-COVID numbers, with the new pandemic wave and resultant restrictions and partial lockdowns hitting consumers sentiment.

During the ongoing second wave of the Covid-19 infections, many states have imposed lockdowns or lockdown-like restrictions as a desperate measure to restrict the spread of the virus.

Usually, 30-40 tonnes of gold is sold on the auspicious occasion of Akshaya Tritiya, but this time sales were not likely to reach even 1 tonne.

India’s current account swung to a deficit for the first time in the current fiscal, with the gap coming at $1.7 billion or 0.2 % of the GDP in the December quarter.

India is the largest importer of gold, which mainly caters to the demand of the jewelry industry.

Gems and jewelry exports grew multi-fold to $3.4 billion in April as against $36 million in April 2020. Due to a lockdown in April last year, the exports were impacted severely.