Gold imports dipped for the third consecutive month in April to 60.4 percent to USD 1.23 billion, which is expected to keep a lid on the country's current account deficit.

The sliding prices of the precious metal in both global and domestic markets are seen as a contributory factor for the plunge.

Gold imports stood at USD 3.13 billion in April 2015.

The contraction in the imports helped narrow trade deficit to a five-year low of USD 4.84 billion last month. The deficit was at USD 11 billion in the year-ago period.

India is the largest importer of gold in the world and the imports mainly cater to the demand of jewellery industry.

India's current account deficit (CAD) narrowed to 1.3 percent of GDP in third quarter of the fiscal 2015-16 as against 1.5 percent in the same period previous year, mainly on account of lower trade deficit.