Govt will look into relaxing gold imports after weighing all pros & cons: FM
Updated: Feb 18, 2014 12:10:51pm
New Delhi, Feb 18 (KNN) Finance Minister P Chidambaram said that the government will look into relaxing gold imports after weighing all pros and cons, adding that India cannot afford to import gold worth USD 50-60 billion a year as it leads to foreign exchange outgo.
"There are pros and cons (on easing gold import curbs), we will weigh them carefully, the goal is to contain the CAD at a level where it can be fully and safely financed," Chidambaram told reporters after presenting the interim budget in parliament earlier.
We have to keep in mind that the goal is to contain the CAD at a level where it can be safely and fully financed, Finance Minister said.
Due to the restrictions on imports, China has surpassed India as the world's biggest buyer of gold.
This financial year, India’s Current Account Deficit has been contained at USD 45 billion, almost half of what it was earlier and the exchange rate has also stabilised.
India is a net importer of gold. High gold import was one of the major contributors towards country’s high record CAD of USD 88 billion in the last fiscal.
Chidambaram said that it was absolutely necessary to put curbs on gold import.
He reiterated that India cannot afford to import gold worth USD 50-60 billion a year as it leads to foreign exchange outgo.
In order to restrict the gold import, the government and RBI had put several restrictions on the gold import like raising the customs duty thrice to 10 per cent in 2013; linking the gold import to exports.
The Finance Minister also indicated the CAD may further fall below USD 45 billion.
"Keeping that goal in mind, if anything can be done, we will certainly look into it. The operative word is 'we will look into it'," Chidambaram said. (KNN/SD)
"There are pros and cons (on easing gold import curbs), we will weigh them carefully, the goal is to contain the CAD at a level where it can be fully and safely financed," Chidambaram told reporters after presenting the interim budget in parliament earlier.
We have to keep in mind that the goal is to contain the CAD at a level where it can be safely and fully financed, Finance Minister said.
Due to the restrictions on imports, China has surpassed India as the world's biggest buyer of gold.
This financial year, India’s Current Account Deficit has been contained at USD 45 billion, almost half of what it was earlier and the exchange rate has also stabilised.
India is a net importer of gold. High gold import was one of the major contributors towards country’s high record CAD of USD 88 billion in the last fiscal.
Chidambaram said that it was absolutely necessary to put curbs on gold import.
He reiterated that India cannot afford to import gold worth USD 50-60 billion a year as it leads to foreign exchange outgo.
In order to restrict the gold import, the government and RBI had put several restrictions on the gold import like raising the customs duty thrice to 10 per cent in 2013; linking the gold import to exports.
The Finance Minister also indicated the CAD may further fall below USD 45 billion.
"Keeping that goal in mind, if anything can be done, we will certainly look into it. The operative word is 'we will look into it'," Chidambaram said. (KNN/SD)
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