MUMBAI: India has slashed its November gold import estimates by an unprecedented $5 billion, the largest revision for any commodity in history, after errors in preliminary calculations inflated the figure to a record, government data showed on Wednesday.
New Delhi reported last month that its gold imports surged to a record high of $14.8 billion in November, more than doubling from $7.13 billion in October.
The spike in gold imports widened the country’s merchandise trade deficit to a record $37.84 billion in November, significantly exceeding economists’ forecast of $23.9 billion, spooking financial markets.
The country’s gold imports in November were $9.84 billion, significantly lower than a preliminary estimate of $14.8 billion published last month, according to data compiled by the Directorate General of Commercial Intelligence and Statistics (DGCIS).
The downward revision in gold imports by $5 billion would reduce the trade deficit by a similar amount, said a government official, who declined to be named.
India is the world’s second-largest consumer of gold and relies on imports to meet most of its demand, which typically increases during the festival and wedding season in the December quarter.
India’s gold imports to plunge in December after record November
Despite the revision of November numbers, the country spent a record $47 billion on gold imports in the first 11 months of 2024, surpassing the $42.6 billion spent during the whole of 2023, the data showed.
India imports gold mainly from Switzerland, United Arab Emirates, Peru and African countries. Gold delivered better returns than stocks for Indian investors in 2024, driving increased demand for coins and bars, according to World Gold Council.
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