Govt not planning further curbs on gold imports, says Trade Secy Rajeev Kher

The government is not planning to impose any further curbs on gold imports as the current account deficit is under control, Trade Secretary Rajeev Kher said on Wednesday.

The country has imported 7 tonnes of gold so far in January, while 39 tonnes of gold was imported in December, Kher said after a meeting with industry representatives.

According to government data, domestic gold imports in November stood at 151.58 tonnes.

In a surprise move on November 28, the government scrapped the 80:20 rule, which mandated traders had to export 20 per cent of all gold imports.

"The government is also considering our recommendation of a reduction in the import duty," said Bachhraj Bamalwa, director of industry body the All-India Gem and Jewellery Trade Federation, which was represented at the meeting.

Bamalwa expects January gold imports to be around 50 tonnes.

The government in May 2014 had eased some of the restrictions on gold imports it imposed in 2013 when a wide current account deficit had sparked the worst currency turmoil since the 1991 balance of payments crisis.

As part of its measures the government in 2014 raised the import duty on gold to 10 per cent, which has led to widespread smuggling of the precious metal.

(Reuters)