New Delhi, Jan 7 (KNN) Amidst the Commerce Ministry supporting the jewellers demand for lifting off import curbs on gold, the Finance Ministry does not seem to be agreeable to the proposition since it does not want to take any chances with the vulnerable current account situation.

According to media reports, any possibility of lifting import curbs on gold can be explored only after the CAD situation is reviewed in the next financial year.

Besides raising the import duty to 10 per cent, the Finance Ministry and the RBI have slapped tough restrictions on gold imports as the yellow metal had accounted for major share of the country’s import bill putting the CAD in stress. However, after a sharp fall in gold import, the jewellery industry has been making a strong demand for easing the import curbs.

Their demand was supported by Commerce and Industry Minister Anand Sharma, who said last week, “…we should not bring in controls in excessive manner which lead to people bringing it in through other means like smuggling. Government is keeping watchful eye. I am assuring that enough gold is available for gems and jewellery industry.”

Gold imports dropped to 19.3 tonnes in November from 162 tonnes in May due to curbs on gold import by both the government and the RBI. (KNN Bureau)