Gold imports contract 29.5% to $1.39 bn in February

New Delhi: After a sharp rise in January, gold imports in February declined 29.49 percent to USD 1.39 billion, which is expected to keep a lid on the country's current account deficit (CAD).

The sliding prices of the yellow metal in both global and domestic markets are seen as a contributory factor for the plunge.

Gold imports stood at USD 1.98 billion in February 2015.

The contraction in imports helped narrow trade deficit at USD 6.54 billion last month as against USD 6.74 billion in the year-ago period.

India is the largest importer of gold in the world and the imports mainly cater to the demand of the jewellery industry.

In July-September of the current fiscal, CAD rose to USD 8.2 billion, or 1.6 percent of GDP, from 1.2 percent, or USD 6.1 billion in the April-June quarter.