Plans to curb gold import
Posted on: 14/Nov/2014 4:26:22 PM
The government is setting plans to bring about limitations on gold import by huge private agencies, aiming to bring down the total consumption of the yellow metal in the country. This step is done following a report given out by the World Gold Council which pointed the increase in gold import in India.
Following the huge sales in gold, India is said to have emerged as a huge consumer of gold more than China. India left it No 1 position as gold consumer to China in 2011.
This tag given to our country doesn’t seem to bring happiness to the government though. According to government officials, this increase in import of gold will hugely affect the account deficit of the nation. Following this, there was a review meeting held by the finance ministry on Thursday.
Further to barring gold import by few gold importing firms in July 2013, the companies resumed the process by the mid of this year. The review meeting eyed on these importers and derived plans to restrict their import. A final decision will be made soon.
Comparing the demand for gold in the global market with that of the Indian, there is found to be a huge gap. While the global demand is low by 2 per cent, it is high in the Indian market by 39 per cent.
