American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Politics

Accounting blunder: India corrects gold import data, trade deficit overstated

by admin January 12, 2025
January 12, 2025
Accounting blunder: India corrects gold import data, trade deficit overstated

The Indian government has admitted to a significant miscalculation in its import figures for precious metals, an error that had inflated the trade deficit to a record level in November and contributed to a sharp decline in the value of the rupee.

The Ministry of Commerce and Industry acknowledged the data discrepancy on Thursday, stating that it resulted from a migration to a new data transmission system.

Revised import figures reveal a significant overstatement

The ministry stated that it revised import figures from April to November after discovering the miscalculation.

Preliminary estimates released earlier this week had suggested gold imports for November totaled $9.84 billion, nearly $5 billion lower than what had been previously reported.

The ministry also stated that it is still in the process of fully reconciling the data, as reported by Bloomberg.

This revelation follows an “unusual surge” in precious metal imports reported in November, which had raised red flags and prompted scrutiny of the figures.

The initial miscalculation led to a four-fold increase in gold imports, which reached a record high of $14.8 billion in November.

This artificially inflated figure caused India’s trade deficit to widen to $37.8 billion.

While gold imports have been steadily increasing since the government reduced duties on the precious metal to 6% from 15% in the July budget, the sharp spike had baffled analysts and raised concerns about the reliability of the figures.

Based on Bloomberg’s calculation using the preliminary revisions available, India’s trade deficit for November was $31.83 billion.

Data revisions and limited impact on the rupee

The ministry stated that it regularly revises its figures “from time to time” based on “data that’s received late, amendments in the respective months and qualitative corrections wherever required.”

Preliminary revisions show that gold imports for the April-November period were $37.39 billion, down $11.7 billion from previously reported.

Economists believe the revisions will result in a narrower current account deficit, but are not expected to have a significant impact on the local currency.

While the Indian rupee may experience further weakness due to a stronger US dollar, it is still expected to “outperform” other currencies in Asia’s emerging markets in 2025.

The post Accounting blunder: India corrects gold import data, trade deficit overstated appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
TikTok ban update: Supreme Court deliberates potential US shutdown over security concerns
next post
Donald Trump sentenced to ‘unconditional discharge’ in hush money case

Related Posts

Biden administration puts hold on US ammunition shipment...

May 7, 2024

Why did Goldman Sachs upgrade Brazil’s Ultrapar to...

February 1, 2025

Jill Biden ‘stunned’ Joe’s family during health scare,...

February 26, 2024

Russia interfering in 2024 election to help Trump,...

July 12, 2024

RFK Jr. drops surprise campaign ad during Super...

February 13, 2024

Trump faces off against GOP establishment as he...

March 17, 2024

UN forced to fire 9 employees over likely...

August 6, 2024

Senators confront Secret Service chief at Republican convention:...

July 18, 2024

How can Israel respond to Iran’s brazen attack?

April 16, 2024

CCP flagship newspaper touts Biden campaign’s TikTok, criticizes...

March 2, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,199)
    • Investing (2,531)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved