India Increases Import Duty on Gold Jewelry

India has increased the duty on imports of gold jewellery to 15% from 10%, in its latest attempt to curb the demand for the precious metal.

Imports of gold jewellery rose after the government increased duties on import of raw gold, including bars and coins, three times this year.

Demand for gold in India has risen after the recent drop in prices.

However, gold imports are also one of the biggest contributors to India’s widening current account deficit.

A current account deficit is the difference between inflow and outflow of foreign currency and it occurs when a country’s total imports are greater than its exports.

A widening deficit strains the country’s foreign exchange reserves, as well as the value of its currency.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza