06 Feb , 2022 By : Kanchan Joshi
NEW DELHI : India accounted for the highest growth of intermediate goods imports in July to September 2021, led by a triple-digit increase in gold imports, data by World Trade Organization (WTO) showed.
India’s intermediate goods imports grew from supply chains by 65% year-on-year in the quarter ended September, the highest in the world for the third straight quarter. It was mainly due to a 161% increase in non-monetary gold imports. Non-monetary gold covers exports and imports of all gold not held as reserve assets (monetary gold) by the authorities.
India's gold imports reported a 252% rise to $24 billion in April-September period compared with the corresponding period last year on the back of revival of festival demand post the second covid-19 wave.
Yellow metal imports jumped to $5.11 billion in September alone compared with around $600 million in the corresponding month last year. It led to record widening of the country's trade deficit to $22.6 billion during September compared with $2.96 billion in the year-ago period.
In the Union budget last year, the government had lowered import duty for gold to 7.5% from 12.5%. According to the WTO, exports of intermediate goods (IGs) increased in all regions in the third with a world average of 27% in Q3 compared with a 1% contraction in the corresponding period last year and 47% growth in Q2 (April-July).
IG are inputs used to produce a final product. They range from crops used in food production to textiles and metals needed to manufacture goods. Trade in IGs is an indicator of the activity in supply chains, which was severely impacted in the early stages of the covid-19 crisis. The share of IGs in total trade (excluding fuels) in Q3 2021 was 53%, a ratio that remained constant over the last decade, WTO noted.
While India accounted for the highest growth in IG imports, it was followed by Japan, at 42% reflecting the high level of industrial activity in the economy.
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