In November, the figures might have been inflated by as much as 50 tons, or about 30% of the total amount of gold imported during that month.
According to reports, a computation error caused India to import gold at a record rate last month. The spike in gold imports that increased India's trade deficit is being reexamined by the government.A Bloomberg story claims that a computation error caused the spike in gold imports that caused the rupee to fall to its lowest level ever. According to the study, officials counted gold shipments twice at warehouses. In November, the figures might have been inflated by as much as 50 tons, or about 30% of the total amount of gold imported during that month.
The Directorate General of Commercial Intelligence and Statistics (DGCIS) in India has begun a "detailed examination of the gold import data and reconciliation would be done with the data" that the tax department has been given, according to a report by Reuters.
If a mistake is found, trade numbers will probably be updated, and traders can anticipate a change in the foreign exchange rate. According to the report, it might also allay worries about the economy's condition that the statistics had sparked.
Due to a surge in gold imports to a record $14.8 billion from just $3.44 billion a year earlier, India's trade deficit increased to $37.8 billion in November. Analysts were baffled by the enormous surge, despite a gradual increase in gold imports.
According to the article, officials probably combined the imports held by custodians in warehouses located in free trade zones with the totals reported by local banks that purchase the gold from the custodians. Only once gold is checked out of the warehouse is it deemed an import.
According to the research, total gold imports could still fall within the 800-1,000 tons that India purchases each year.
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