Author: Paul Ploumis18 Jul 2014 Last updated at 08:19:37 GMT

 

NEW DELHI (Scrap Monster): In its detailed analysis of the trade data for the month of June ’14, ASSOCHAM-the apex trade body in India has warned the government to remain watchful on gold and oil imports into the country. High gold imports had pushed trade deficit in the country to 11-month high in June ’14.

 

D S Rawat, Secretary General, ASSOCHAM urged the government to be watchful about gold imports. Huge rise in gold imports by over 65% should not be repeated. The government should take necessary steps to ensure that gold imports are contained within limits. In the wake of surprisingly high trade deficit figures, the trade body aligned with the FM’s decision to persist with the tight gold import norms.

 

The trade body also noted that the only way to counter burgeoning gold imports is to boost the export trade. Agricultural exports and shipment of electronic goods are the two primary areas which government should focus on, Rawat added.

 

The strict import rules imposed by the previous government and the Reserve Bank of India (RBI) had restricted gold imports during the past seven consecutive months. However, the government’s decision to allow more banks and trading houses to import the yellow metal had resulted in higher gold imports in June this year.

 

According to data, trade deficit had climbed to $11.76 billion in June ‘14 as against the $11.23 billion in May this year. The gold imports had surged over 65% year-on-year to $3.12 billion.