Indian Gold Imports Rise 176% in August

India has witnessed a massive 176% jump in gold imports in August. From $738.7 million a year ago to $2.03 billion in the last month, India’s high bullion growth has ensured that the country would not be keen to cut import duties anytime soon.

The latest data comes barely a week before the government’s planned announcement of a new five year foreign trade policy that analysts maintain is likely to include sops for domestic value added products, new rules for special economic zones, which include those in the gems and jewellery sector, and a probable review of free trade agreements that India had signed with various countries and groups of nations.

Trade Minister Nirmala Sitharaman has noted that the government would be keen to continue with its policy that helped narrow India’s trade deficit, in an indication that status quo would continue on India’s import duties for some more time.

The government had increased customs duty on gold to 10% and banned the import of gold coins and medallions, while the apex bank linked imports of the metal to exports.

via Mineweb

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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