India official gold imports dropped substantially in Dec 2014

 

08 Jan 2015 Last updated at 07:25:18 GMT

 

NEW DELHI (Scrap Monster): The gold imports by India during the month of December 2014 declined sharply over the previous month. Following this, the government has ruled out imposition of any fresh curb on gold imports into the country. The imports continued to remain subdued during the initial week of January this year.

 

As per trade data, the country imported 39 tonnes of gold during Dec ’14, down nearly 75% when matched with the imports of 151.58 tonnes in Nov ’14. It must be noted that the higher gold imports during November had pushed the country’s trade deficit to 18-month high of $16.8 billion. The gold imports during Sep ’14 and Oct ’14 had totaled 95.62 tonnes and 109 tonnes respectively.

 

Meantime, the country has imported just under 7 tonnes of gold during the first week of the New Year.

 

The declining gold import figure has come as a big relief to the government. Rajeev Kher, Commerce Secretary stated that the gold imports for Dec ’14 and Jan ’15 are looking extremely comfortable. He added that the scrapping of 80:20 scheme by the government has yielded result. He added that the government has no plan whatsoever to impose fresh curbs on gold import as long as the current account deficit (CAD) remains under control. Kher further clarified that 80:20 scheme is gone and the government is not looking currently at any new policy.

 

Earlier, the government had withdrawn the 80:20 gold import rule, stating that it led to distortion of market and had boosted imports. The Gems and Jewellery Export Promotion Council (GJEPC) noted that availability of gold in market will not be affected by removal of 80:20 rule.