Indian Government Considers Reimposing Gold Import Restrictions

The government is mulling over reimposing some restrictions on gold imports after Diwali as higher inward shipments of the metal in the last few months have pushed up the trade deficit, a government official said.

The Commerce Ministry has called a meeting post Diwali inviting representatives from RBI and stakeholders of bullion and gold industry to discuss the matter, the official added.

“Gold imports have been rising in the last few months. We are going to relook the import norms again and see what can be done to address the issue,” said a government officials.

Gold imports have surged ever since the import norms were relaxed. Monthly gold imports – which averaged 10-15 tonnes till June – increased to 38.3 tonnes in July, 63 tonnes in August and 92 tonnes in September, as per the industry data.

India’s exports grew marginally by 2.73 per cent in September, but a surge in gold imports pushed the trade deficit to about 18-months high of USD 14.2 billion.

That apart, the official said: “Bullion dealers have also raised some concerns, which will be discussed in detail in a meeting likely to be held after Diwali.”

via India Times

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