Home / Markets / Commodities /  Gold imports into India jump to highest in 3 months: Report

Gold imports into India jumped to the highest in three months in July as economic activity picked up after coronavirus-related lockdowns eased, Bloomberg reported, citing sources. A softening of prices also help to support demand.

Inbound shipments surged 71% from a year earlier to 43.6 tons last month, Bloomberg reported, citing a person familiar with the data. That’s the biggest inflow since 70.3 tons in April.

Many Indian states have gradually removed many restrictions on businesses and the movement of people as virus cases receded after peaking in May. The increased footfalls at stores and a nearly 5% fall in domestic gold prices this year has also helped perk up demand.

India’s gasoline demand is on the cusp of a V-shaped recovery as movement restrictions have been eased or lifted in several states, said Senthil Kumaran, head of South Asia oil at industry consultant FGE, to Bloomberg.

Tata Group’s Titan said with the receding second wave of pandemic and gradual lifting of restrictions on stores, the sales bounced back strongly towards Q1 quarter-end, with good momentum in Q2 quarter till date. "This year, Watches & Wearables and Eyewear segments have also witnessed rapid recovery in walkins and sales with the re-opening of stores, which was seen in only Jewellery division last year," it said.

The jewellery division is gaining good traction in new customers and its mix in total buyers has reached the pre-pandemic levels, the Tata group company said.

India’s gold demand is expected to be stronger in the second half of 2021 compared with the prior six months due to softer prices and more occasions such as festivals and weddings, the World Gold Council recently said.

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