Gold imports into India rose 88% in March to 60 metric tonnes according to data released by the Indian customs department (DGCIS). Under Indian law, 20% of all imports have to be exported leaving official net imports at 48 tonnes.
The Indian government has tried to limit gold imports in an attempt to narrow the country’s current account deficit and protect the value of the rupee. Since the introduction of import restrictions gold imports into India have been difficult to measure as smuggling across the country has soared.
As a result of gold import tax silver demand has increased significantly. In 2013 alone silver imports rose 190% to 6,125 tonnes and year to date silver imports are up 59% to 760 tonnes.