India splurged a record $55.7 billion on gold imports in 2021, shopping for greater than double the earlier yr’s tonnage as a value drop favoured retail patrons and pent up demand emerged for weddings that had been delayed when the pandemic first hit.
The beforehand unreported particulars of the world’s second largest shopper nation’s hovering imports had been disclosed to Reuters by a senior authorities official who requested anonymity as he was not authorised to talk to media.
The 2021 gold import invoice simply doubled the $22 billion spent in 2020, and surpassed the earlier excessive, set in 2011, of $53.9 billion, in keeping with the official, who tracks broad import traits.
In quantity phrases, India imported 1,050 tonnes of gold in 2021, probably the most in a decade, and way over 430 tonnes imported in 2020, the official stated.
While international bullion costs drew assist from the sturdy demand in India, the outlay on imports would have added to strain on the nation’s ailing rupee.
“Last yr demand was strong as a number of weddings had been postponed to 2021 from 2020 due to the coronavirus outbreak,” stated Harshad Ajmera, a gold wholesaler in Kolkata.
Indian authorities imposed strict lockdowns throughout the first waves of the pandemic in 2020, hitting gold demand throughout the wedding ceremony season and key festivals reminiscent of Akshay Tritiya, when shopping for gold is taken into account auspicious.
Gold is regarded an important a part of the bride’s dowry in India and can be a preferred wedding ceremony reward.
Ajmera famous a value correction had made gold extra reasonably priced for retail shoppers in India early final yr
Local gold costs hit a record excessive of 56,191 rupees per 10 grams in August 2020, however fell again to 43,320 rupees in March 2021, when month-to-month imports spiked to a record 177 tonnes.
(Reporting by Rajendra Jadhav; Editing by Sanjeev Miglani & Simon Cameron-Moore)
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