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Government to revisit gold import norms

Updated: Jan 04, 2014 03:18:22pm
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Hyderabad, Jan 4 (KNN) The government has said that it is willing to revisit tough restrictions on import of gold as gems and jewellery industry were facing problem in this regard.
 
The Union Commerce and Industry Minister, Anand Sharma, said that there is enough availability of gold in the country but the import norms will be revisited.
Speaking on the side-lines of an inaugural event here yesterday, he said, “Our effort is to tackle the channel of gold smuggling.”
 
The Directorate General of Foreign Trade ( DGFT), the commerce secretary, the economic affairs secretary and Reserve Bank of India (RBI) will discuss and take a collectively decision, Sharma said adding that when situation demands, he will discuss the matter with finance minister. 

The Commerce Minister also said that the demands of the industry have to be met.
 
“At the same time 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," he said.
 
The move to impose curb on gold import was taken to narrow the current account deficit (CAD). The CAD touched a historic high of 4.8 per cent of GDP in 2012-13 mainly due to high imports of gold and petroleum products.
 
The CAD narrowed to 1.2 per cent of GDP in the second quarter of this financial year after a steep decline in gold imports. The deficit was 4.9 per cent of GDP in the first quarter (April-June).
 
India is the largest importer of gold, which is mainly used to meet demand of the jewellery industry. Imports stood at about 830 tonnes in 2012-13. (KNN Bureau)

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