The Indian trade balance deficit (CAD) can be controlled, thanks to the drop in gold imports by 62% to 127 tons over the period from April to June compared to the previous quarter of the fiscal year.
In fact, the increase in gold imports in June caused a sharp increase in the trade balance deficit to a record level for 11 months, and the uncertain pressure on world oil prices exerted additional pressure on the trade balance. India's trade deficit last month soared to $ 11.76 billion, a record high since July 2013.
If the Indian government lowered the duty on the import of gold from 10% to 2%, this would lead to an increase in imports in July. However, in view of the fact that in the preparation of the country's budget there was no announcement of a weakening of duties, it is expected that the July import of gold will remain at the level of 30 tons, which will not create additional concerns about the growth of the trade balance deficit.