Gold import curbs to come back?
19/11/2014 13:28
Against the backdrop of a surge in imports of the bullion in recent months, Indian government officials are considering re-imposing curbs on inbound gold shipments as Asia’s third biggest economy seeks to contain the current account deficit.
According to media reports, a government official said that the Finance Ministry may make a decision in the coming days over whether to re-impose some restrictions on imports of the yellow metal.
The restrictions may include curbing imports of gold by star and premier trading agencies, imposition of a ban on exports of machine-made jewellery from India and asking banks to curb lending for inbound gold shipments.
India’s gold imports surged to USD 4.17 billion in October 2014 from USD 1.09 billion in the same month a year ago, while in volume terms, they climbed to 150 tonnes from 24 tonnes, widening the country’s trade shortfall to USD 13.35 billion from USD 10.59 billion a year ago.
India is the world’s second biggest consumer of the yellow metal after China.
Last August, policymakers had raised the import duty on the yellow metal to 10 per cent while it had introduced the 80:20 rule meaning that 20 per cent of imported gold must be re-exported. However, the 80:20 rule was relaxed in May.
19/11/2014 13:28
Against the backdrop of a surge in imports of the bullion in recent months, Indian government officials are considering re-imposing curbs on inbound gold shipments as Asia’s third biggest economy seeks to contain the current account deficit.
According to media reports, a government official said that the Finance Ministry may make a decision in the coming days over whether to re-impose some restrictions on imports of the yellow metal.
The restrictions may include curbing imports of gold by star and premier trading agencies, imposition of a ban on exports of machine-made jewellery from India and asking banks to curb lending for inbound gold shipments.
India’s gold imports surged to USD 4.17 billion in October 2014 from USD 1.09 billion in the same month a year ago, while in volume terms, they climbed to 150 tonnes from 24 tonnes, widening the country’s trade shortfall to USD 13.35 billion from USD 10.59 billion a year ago.
India is the world’s second biggest consumer of the yellow metal after China.
Last August, policymakers had raised the import duty on the yellow metal to 10 per cent while it had introduced the 80:20 rule meaning that 20 per cent of imported gold must be re-exported. However, the 80:20 rule was relaxed in May.
