India’s gold imports fell by 76% to 60 tonnes in the April-July period this financial year, reported PTI. Last year, the country imported 250 tonne of the yellow metal during these four months. According to precious metals refining and fabricating company MMTC-PAMP, the dip is because of the high import duty of 10% and other taxes.

However, the firm hinted at a growing smuggling business when it said that the country imported around 80 tonnes of the yellow metal through "unofficial channels" during the same period. Managing Director Rajesh Khosla told PTI that this will continue if the customs duty is not reduced to 3-4%.

As the world’s second largest gold consumer after China, India imported 650 tonnes in 2015-16. However, reduced gold imports help keep current account deficit under control.

Khosla further said that gold imports by MMTC-PAMP itself have fallen to 5 tonnes during the period compared to 50 tonnes last year. He added that the company may import a maximum of 10 tonnes this year as against 120 tonnes a year ago.