Wednesday, February 27th 02:09 PM IST

India Economic Survey calls for market-determined Gold

# India gold reserves  # import tariff value  # gold imports  # Economic Survey  

Economic Survey is considered a major report on the country's economy and is presented to parliament every year a day before the union budget.

NEW DELHI(BullionStreet): India reiterated it's stance to curb overall imports, particularly of gold in the newly released Economic Survey 2012-13.

The Economic Survey tabled in India's parliament by Finance Minister P. Chidambaram said the main focus had to be on curbing imports as the room to increase exports in the short-run was limited.

Economic Survey is considered a major report on the country’s economy and is presented to parliament every year a day before the union budget.

The Survey called for curbs on import of gold and crude oil by making their prices more market determined. It also wants policy action to bridge the widening trade imbalance.

The Economic Survey for 2012-13 has a special box on the high gold consumption. It points out that the global financial crisis caused a flight to safe heaven assets.

Global gold prices, as denominated in US dollar,doubled from their levels in since 2008, and three times as denominated in Indian rupees.

In case of India, a big consumer of gold, the high inflation has added to the demand. It points out that way to address this is through making financial instruments more attractive and curbing inflation.

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