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India will import between 900 and 1,000 tonnes of gold in the 2015-2016 financial year, the director of smelter MMTC-PAMP told news agency on Wednesday Reuters. This is slightly more than the amount of gold imported by the country a year earlier. India's financial year 2015-2016 started in April and will last until April next year. MMTC-PAMP is a joint venture between the Government of India and the Swiss smelter PAMP which was founded in 1977.
The Indian gold market is picking up again due to the relaxation of import rules, making the precious metal more available at a lower premium. Also, the decrease in the Gold price to the lowest level in five years has had a positive impact on the demand for physical gold in many parts of the world. Figures from a recently published report by Thomson Reuters GFMS confirm the increased demand for gold in the Indian market. Sales of jewellery as well as gold bars and gold coins showed an increase in the second quarter compared to the first quarter.
In the month of July, India imported about 70 to 75 tonnes of gold and the figure is expected to be at least as high in the month of August. In the first half of this year, India imported just over 390 tonnes of gold, similar to China's gold imports, according to Thomson Reuters GFMS.
India has traditionally been a major mainstay for the physical gold market. Almost a quarter of the annual demand for gold coins, gold bars and jewellery is accounted for by the more than 1 billion Indians. They buy gold as a form of savings, because the banking system in that country is not yet as developed as in many Western countries. Confidence in the value of thean the money much lower, because the Indian rupee is a fairly weak currency. It is estimated that there are more than 20,000 tonnes of gold in Indian households and temples.
India will import 900 to 1,000 tonnes of gold this year, according to the chief executive of smelter MMTC-PAMP
