Commerce ministry to bring SoP for data collection amid concerns over gold import mismatch

Prior to the revision of gold import data, the import value of the yellow metal was reported at $14.8 billion. (Photo: Reuters)
Prior to the revision of gold import data, the import value of the yellow metal was reported at $14.8 billion. (Photo: Reuters)

Summary

  • The finalized SoP is expected to be released in the coming months, setting a benchmark for future data collection practices and enhancing India’s trade data integrity.

New Delhi: The commerce ministry is preparing the standard operating procedure (SoP) for data collection to address discrepancies in import data, a top government official said, after mismatches in gold import figures reportedly embarrassed the government.

Unprecedented gold imports recorded in November contributed to a record goods trade deficit of $37.8 billion. This was the highest merchandise trade deficit in India's history, widening sharply from the $20.6 billion shortfall recorded during the same period in the previous year. The figure also far exceeded market expectations, which had anticipated a deficit of around $23 billion.

Prior to the revision of gold import data, the import value of the yellow metal was reported at $14.8 billion. However, after the revision earlier this month, the figure was significantly reduced to $9.8 billion, marking a sharp decrease of $5 billion from the initially announced amount.

This development has amplified worries about India's trade imbalance and underscored the need for more robust data governance to ensure transparency and reliability in reporting.

Also read: Gold import revision trims India’s record Nov trade deficit by $5 billion

The import of gold in the first three quarters (April-December 2024) of the current fiscal stood at $47.09 billion, compared to $35.95 billion during the same period in the previous fiscal year, reflecting an increase of 30.96%. The import of gold in December stood at $4.7 billion, the commerce ministry data showed.

The SoP initiative follows reports of inconsistencies in import records, particularly in the gold sector, where discrepancies in quantity and value have raised questions about the reliability of trade data.

According to commerce secretary Sunil Barthwal, the SoP will involve collaboration between multiple agencies, including the Directorate General of Commercial Intelligence and Statistics (DGCI&S), Directorate General of Foreign Trade (DGFT), the Central Board of Indirect Taxes and Customs (CBIC), and the Ministry of Commerce and Industry.

Coordination with private stakeholders

The government also plans to enhance coordination with private stakeholders, such as importers and traders, to ensure data is reported uniformly across all channels, Barthwal said.

The proposed framework will focus on uniform definitions, clear documentation requirements, and digital integration to minimize human error and discrepancies in reporting. It will also include provisions for regular audits and real-time monitoring of import and export transactions, the secretary said.

The finalized SoP is expected to be released in the coming months, setting a benchmark for future data collection practices and enhancing India’s trade data integrity, he said.

Also read: India’s trade deficit declines to $21.94 bn in December

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
more

topics

MINT SPECIALS