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Friday, 21st August 2009 (3914 views)

Indian imports of gold are likely to increase in the near future thanks to a number of economic factors, it has been suggested.

According to Reuters, elements such as the stable gold price and positive forecasts for the country's rural gross domestic product (GDP) will help to boost gold imports over the next few months.

Traditionally, the monsoon rains - on which India relies for 60 per cent of its irrigation - have been the main indicator of how imports will fare in the second half of each year.

However, this has recently changed, said Religare Capital Markets equity president Amitabh Chakraborty.

"[Agricultural] GDP is more related to rural wealth and that is actually underpinned by many rural schemes," he commented.

The key gold buying period for Indian consumers began earlier this month, with several festivals and the upcoming wedding season expected to buoy demand for physical gold during the rest of 2009.

 

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