India as a nation is gold loving country, It wont be wrong to say after GOD it is Gold that is most sought after in India. India Imports gold from around 40 countries but major contribution comes from UAE after Switzerland. UAE has been uniform with its Gold supply to India. More than 15% of Gold import in last 5 years has been done from this country only.
All figures are in US$ Millions.
In last 5 years, India imported highest Gold in year 2011-2012, post that Gold import is showing a sharp decline. However decline in Gold import can not be attributed to decline in Gold demand in India. In 2013-14, duty has been imposed on Gold by government of India. which resulted sharp increase of gold prices, however as there was huge difference in Gold price in India and International market, gray channel was opened. Illegal route was developed that can not be accounted in books.
India in financial year 2011-12 imported Gold from Switzerland worth US$ 10406, it was minutely reduced to 10228 in next year. This fall continue and was reported least in financial year 2015-16. In Financial year 2015-16 India imported almost half than that of 2011-12. In this year India imported Gold from Switzerland worth US$ 3328 Millions. Accordingly total import to country was also declined over the years. In 2011-12, Gold Imported by India was US$ 34578 and in last financial year it was shrink to US$ 19299. However it should be noted that Import from UAE declined to 33% of what was in 2011-12. It is sharpest decline.
Decline in import from UAE is also goes to crude oil prices. Crude oil is at low bottom prices. And UAE main export commodity is crude oil. Indian residents go to UAE for job opportunity, however job cut is on rise as a result Indian resident who used to come India with Gold saw sharpest decline.