Indian finance minister Tuesday made yet another appeal to bis countrymen to cut down gold consumption but ruled out any chances of a complete ban on gold imports.
NEW DELHI(BullionStreet): Indian finance minister Tuesday made yet another appeal to bis countrymen to cut down gold consumption but ruled out any chances of a complete ban on gold imports.
P.Chidambaram while addressing a press conference said India cannot completely ban import of gold as there is a long time attachment to gold in this country.
But the Indians can definitely reduce their appetite for gold for the sake of their country, he added.
Attributing the high Current Account Deficit to mainly gold import, Chidambaram said the inward shipments of the precious metal resulted in outgo of $50 billion.
High imports strain the Current Account Deficit which hit a record high of 4.8 per cent in the 2012-13 fiscal.CAD occurs when total imports of goods, services and transfers is greater than the exports.
India had taken number of measures to cut down gold imports and also to reduce consumption.
To curb demand, the government hiked the import duty on gold thrice in a year and raised it recently by 2 per cent, to 8 per cent. Besides, RBI too, has put restrictions on banks on importing gold.
Meanwhile, country's gold imports in June are estimated to have fallen to around 31 tonnes, down from 162 tonnes in May and 141 tonnes in April.
India is the largest importer of gold and is mainly utilised to meet demand of the jewellery industry. The imports stood at around 830 tonnes in 2012-13.
In value terms, gold and silver imports are estimated to have declined substantially to $2.45 billion in June, from $8.39 billion in May.
During the first three months of the current fiscal, April-June, inward shipments stood at to $18.33 billion in value terms.