NEW DELHI(BullionStreet): India would take further measures to control gold imports to contain the fiscal deficit, said finance minister P. Chidambaram.

Speaking at a function here he said government needs to continue efforts to contain gold imports which contributed $64 billion to the widening Current Account Deficit.

He said “Some measures may cause immediate pain but this was necessary to ensure that the fiscal deficit came down to 3 per cent in the next three years. Steps were also being taken to contain the Current Account Deficit.

India’s CAD is expected to touch 3.5 per cent of the GDP in the current fiscal. Chidambaram also lauded state governments for containing the fiscal deficit to 2.1 per cent of the GDP.

Earlier, a leading Indian trade body said country's gold imports may fall to 550 tonnes next year from a peak of 967 tonnes in 2011.

Bombay Bullion Association said the demand (imports) for next year is expected to be about 550 tonnes (and) may drop further if there is an increase in customs duty.