Curb on gold import not sustainable in long run

Tags: News
The Commerce Ministry today pitched for removal of restrictions on gold imports saying it is not sustainable in the long-run.

"The present gold import policy is workable only for a short distance. When this policy was conceptualised it was for a limited objective...The Department of Commerce has taken a very clear decision that this policy is not sustainable in the long-run," Commerce Secretary Rajeev Kher said at an event.

He further said it needs to appropriately amended.

In order to check rising current account deficit (CAD), the government had raised import duties and the RBI had imposed curbs on import of the metal.

The government had raised the duty three times taking it to 10 per cent in August last year and also made it mandatory to export 20 per cent of the total gold imported.

Following this, gold imports came down to 19 tonnes in November from a peak of 162 tonnes in May.

The CAD, too, was brought down to 3.1 per cent in April-September of current fiscal, from 4.5 per cent in the same period last year.

Gold and silver imports declined 71.4 per cent to $ 1.63 billion in February.

Gems and jewellery exports dipped 4.18 per cent to $ 3.59 billion in February. During the 11-month period of the last fiscal, shipments declined by 7.15 per cent to $ 35.73 billion.

Last month, the RBI allowed more banks, including Axis Bank and Kotak Mahindra Bank, to import gold under the 80:20 scheme.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The current value of the rupee does not merit market intervention

    The rupee, losing 40 paise per month against the dollar since May, is expected to remain under pressure till the calendar runs out on December 31, bef

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Zehra Naqvi

How smells evoke strong memories

Remember that time when a passing fragrance transported you to ...

Dharmendra Khandal

Indian zoos need a fresh approach

Recently, when a man jumped in a tiger trench of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture