No Plans to Ease Gold Import Restrictions Says India’s Finance Minister

NEW DELHI (Scrap Monster) : Rejecting Congress President Sonia’s call for easing the current gold import restrictions, finance minister P. Chidambaram Thursday said he had no plans in rolling back the restrictions. Addressing the media on the occasion of World Economic Forum at Davos, Switzerland the finance minister of India exerted that the need for controlling the current account deficit is the primary issue that the country is facing now before considering to ease the gold import restrictions.

 

Sonia Gandhi had asked the Commerce & Industry minister of India, Mr. Anand Sharma to consider the issue of relieving the tough restrictions on gold import that has declined the Indian gold import. Sonia was approached by the All India Gems and Jewelry Trade Federation with the request of easing restrictions on gold so that it may put a halt to the rising smuggling of the yellow metal.

 

The Federation had requested in its letter to Gandhi to reduce the gold import to 2 % from the current 10 %.They had also urged the Govt. to ease the 80:20 rule which requires 20 % of the imports to be set aside for export as jewelry. Easing restrictions on gold loan was also requested by them. Commenting on the news, Chidambaram reacted that the government have to focus on implementing effective measures in curbing the current account deficit and not the gold import. He further added that complete idea on the account deficit will be known only when the budget is presented. He had appealed the public to refrain from purchasing gold so as to curb the current CAD.