| Company | Value | Change | %Change |
|---|
Sources explained that migration of SEZ (Special Economic Zones) data from NSDL software to the ICEGATE system for streamlined reporting of imports had caused double counting of gold imports. In May 2024, India started migrating from NSDL to ICEGATE (Indian Customs Electronic Gateway), which is the national portal of the Central Board of Indirect Taxes and Customs (CBIC).
Double-counting implied imports into India and the clearances from SEZs (special economic zones) to domestic tariff areas (DTA) were counted twice due to technical glitches. Under the old NSDL system, imports into SEZs were earlier counted separately as the zones are treated as foreign entities for purposes of levy of customs duty.
On noticing an unusual surge in gold imports last month, the Directorate General of Commercial Intelligence and Statistics (DGCIS) took up a detailed examination of the gold import data, reconciliation for which is being done with the data received by the CBIC. The DGCIS probe is still underway and has noted a downward revision in silver imports data. The probe will also involve the reconciliation of trade data from the earlier months of the current financial year when the migration to the new system had been initiated.
Back then, the government’s reasoning behind the high gold imports was strong investor confidence in the safe asset, reduction in customs duty from 15% to 6%, increasing demand from banks, festive and wedding season demand, rise in gold prices and geopolitical uncertainty.
Stating that the issues concerning inflated figures of gold imports have been largely rectified, sources clarified that correction and revision of data is a part and parcel of the framework of statistics across the world as data compilation is a complicated process. Over the process adopted in India, sources said that import data is collected from over 500 locations with over 2.5 lakh daily transactions being conducted.
The revision in trade data has resulted in a decrease in the trade deficit for November 2024 from $37.84 billion to $32.8 billion. The correction entailed a downward revision of gold import data for November 2024 by $5 billion to $9.84 billion, and by $11.7 billion for the first 8 months of the ongoing financial year.
Also Read: India slashes Nov gold import data by $5 billion in commodity revision
