India’s record gold imports in Nov likely due to an error in calculation: Report

India’s record gold imports last month were reportedly due to a miscalculation.The Indian government is reviewing the surge in gold imports that widened India’s trade deficit.

The rise in gold imports, which pushed the rupee to an all-time low, was due to a miscounting of gold shipments in November, the report said nearly 30 percent of total imports.

Meanwhile, Reuters reported that India’s Directorate General of Commercial Intelligence and Statistics (DGCIS) has undertaken “a detailed review of the gold import data and will be reconciled with the data received by the tax department.”

The trade figures are likely to be revised if an error is found, and traders can expect a correction in the forex.Furthermore, it could also calm concerns about the state of the economy that have been raised by the data, the report said.

India’s trade deficit widened to $37.8 billion in November, driven by a surge in gold imports to a record $14.8 billion from just $3.44 billion a year ago.Although gold imports have increased gradually, the unprecedented increase was surprising analysts.

The report said officials likely added up imports held by custodians in free trade zone warehouses with data reported by local banks that buy gold from custodians.

The report added that total gold imports could still be in the range of 800-1,000 tonnes that India ships annually.