Wednesday, August 13th 05:07 PM IST

Gold imports in India to decline under new norms

# Gold  

Gold imports to decrease consecutively for the third year as the India government keeps a limit on the shipments to support the currency and to prevent current-account deficit from further broadening.

NEW DELHI(Bullion Street): Gold imports to decrease consecutively for the third year as the India government keeps a limit on the shipments to support the currency and to prevent current-account deficit from further broadening.

According to the median of estimates from nine analysts and jewelers including Gitanjali Gems Ltd. and Rajesh Exports Ltd. foreign purchases may drop 15 percent to 700 metric tons in 2014. Imports fell 44 percent to 350 tons in the first half, government and World Gold Council data show.

“I don’t see the measures going away immediately,” said Devendra Pant, chief economist at India Ratings & Research, the local unit of Fitch Ratings. “If we allow gold imports to grow, that will have an impact on our current account,” he said by phone from New Delhi.

India in order to contract the current-account deficit increased the gold import duty to 10 percent three times that of last year. Importers also have to supply 20 percent of their cargo to jewelers for re-export.

After reading this article, people also read:

How about a fully featured Android App for your business?

Most Popular

Bullion Street Newsletter