Gold import up on tariff cut, UAE pact

331% rise in import of yellow metal to $15 bn in Nov resulted in trade deficit, pressure on rupee

- DIPAK MONDAL @ New Delhi

INDIANS' love for gold has often gone against the country's financial health -- with a large part of the demand for the precious metal being fulfilled through imports.

The 331% year-on-year increase in gold imports to $15 billion in November has not only resulted in a record trade deficit during the month, it has also put pressure on the rupee, which has been shy away from the 85-a-dollar level.

The unprecedented increase in gold imports has left many analysts clueless as they feel festive demand alone cannot explain the jump in gold imports.