Author: Paul Ploumis22 Apr 2014 Last updated at 03:06:32 GMT
MUMBAI (Scrap Monster): While the voices have been rising to reverse heavy gold import duties, Indian Commerce Ministry has proposed to relax the restrictions over gold import by saying it is not sustainable in the long-run. According to Indian Commerce Secretary Mr. Rajeev Kher, the restrictions on gold made for short-term objective as it is not sustainable for long-term.
However, Reserve Bank of India has permitted the banks like Axis Bank and Kotak Mahindra Bank to import gold under the 80:20 scheme in order to ease the restrictions on gold import.
India had imposed stringent restrictions over gold supply to curb current account deficit in the country that came down to 3.1 per cent in April-September of current fiscal from 4.5 per cent in the same period last year. By raising to 10 percent from 4 percent import duties, RBI could block the smooth flow of gold from abroad that brought down to 19 tonnes in last November from 162 tonnes in May.
As per the report India’s gold and silver imports brought down 71.4 per cent to USD 1.63 billion in February while Gems and jewelry exports also declined 4.18 per cent to USD 3.59 billion. The shipment of the precious metal was down by 7.15 per cent to USD 35.73 billion during the 11-month period of the last fiscal year.