How much of a threat is the surge in gold imports?

The surge in gold imports last month is likely to have been boosted by temporary factors, including an unleashing of pent-up demand by buyers that had been expecting tax cuts (which didn’t materialise) and greater consumer demand ahead of religious festivals in April. Over the next few years, a rise in gold imports to the levels seen in 2013, which caused the current account deficit to balloon to over 6% of GDP, seems unlikely.