How a provision in trade deal with UAE has led to a surge in India’s gold imports

News Snapshot:

“While cultural affinity for gold remains a significant driver of demand, especially in countries like India and China, the recent surge in gold imports can be attributed to a combination of economic, geopolitical and market factors,” Prithviraj Kothari, managing director of RiddiSiddhi Bullions, told ThePrint. An analysis of the government’s trade data shows that gold imports rose 30 percent in 2023-24 to $45.5 billion or 795.25 tonnes. At the same time, the demand for sovereign gold bonds (SGBs) jumped 312 percent in 2023-24. That is, the value of SGBs bought that year was more than in the two previous years...