Home / Metal News / Gold Imports by India may Drop by 15% to Support the Rupee

Gold Imports by India may Drop by 15% to Support the Rupee

iconAug 13, 2014 17:07
Source:SMM
Gold imports by India will likely decrease for a third year due to the reduced shipments by the government to prevent the increase in the current-account deficit and for supporting the rupee.

NEW DELHI (Scrap Monster): Gold imports by India will likely decrease for a third year due to the reduced shipments by the government to prevent the increase in the current-account deficit and for supporting the rupee.

Gold imports will probably drop by 15 percent to about 700 metric tonnes in the present fiscal, according to the estimations of nine analysts and jewelers like Gitanjali Gems Ltd. and Rajesh Exports Ltd.

According to the World Gold Council and the government data, imports have dropped down by 44 pct to about 350 tonnes in the first six months. Due to the increasing Ukraine and the Middle East concerns, the bullion prices have increased 9 pct this year, but the decreased demand from the China and India, the major gold consumers may limit the increase in the gold price.

During the first half 2014, China's gold consumption decreased by 19 pct as the investors purchased fewer coins and gold bars. Arun Jaitley, Indian Finance Minister in his annual budget, has retained the curbs in gold imports.

Last year India increased the duty on gold imports three times to about 10 pct in order to narrow the high current account deficit and stop rupee depreciation. For re-export, importers also have to provide 20% of their cargo to the jewelers.

According to the central bank, the controls over gold imports have helped to decrease the deficit to about $32.4 billion in the year ended March 31 from a record deficit of about $87.8 billion of last year.

 

Goldgold price
global gold demand
Gold Imports 2013-14
Gitanjali Gems Ltd
Ukraine
Middle East

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news