By Bloomberg

By Bloomberg

Chart of the day | India’s appetite for gold widening current account deficit?

Chart of the day | India’s appetite for gold widening current account deficit?

By Bloomberg

But, according to Macquarie Capital Securities (India) Pvt. Ltd, India’s insatiable appetite for gold, most of which is imported, is leading to a widening of its current account deficit. Macquarie’s estimates suggest that net gold imports alone contributed nearly 40 basis points (bps) to the 130 bps widening of India’s current account deficit between FY08 and FY11. One basis point is one-hundredth of a percentage point.

Also See | Chart of the day (PDF)

Graphic by Yogesh Kumar/Mint

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