A massive appetite for gold across India is causing the country's account deficit to widen, with most of the South Asian nation's gold demand met through imports, a new study by Macquarie Economics Research says."Adjusting India's [U.S.] forty-four billion [or three percent of gross domestic product this fiscal year] current account deficit with net gold imports, the overall deficit would reduce by almost half, to twenty-one billion [or one percent of gross domestic product]," Macquarie analyst Tanvee Gupta Jain wrote in a Nov. 29 report. "Our estimates suggest that net gold imports alone contributed nearly forty basis points to the one hundred thirty basis-point widening of India's account deficit between fiscal 2008 and fiscal 2011."
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