Gold Import restrictions to be relaxed?
Posted on: 29/May/2014 2:22:30 PM
Modi’s government has been examining the possibilities of relaxing the restrictions on gold import.
The budget deficit was very high last year. Restrictions on gold import were imposed mainly due to this reason.
Gold import duty was raised from 10% to 14%. Conditions stipulated that 29% of the imported gold should be exported back. Though these restrictions brought down the budget deficit, Indian Jewellers were greatly affected.
Due to the gold import restrictions, smuggling of gold increased to a large extent.
Keeping all the above factors under consideration, Reserve Bank of India relaxed some restriction on gold import on 22nd May.
It is expected that the newly sworn-in Modi government will shortly announce the new policies on gold import.
