‘Indian gold imports in 2014 may drop by half’

Comments 0
SummaryIndians have depended heavily on old heirlooms and smuggled yellow metal to meet wedding demand.

Indian gold imports may fall 70 per cent in the final quarter of 2013 from 255 tonnes in the year-ago period and are expected to be half usual levels at 500-550 tonnes next year if new import rules are maintained, a top trade body official said on Friday.

To curb a record trade deficit, India imposed an import duty of 10 per cent on gold, and tied imports for domestic consumption to exports, creating scarce supply of the yellow metal and boosting premiums to a record. As a result, Indians have depended heavily on old heirlooms and smuggled yellow metal to meet wedding demand.

“2014 seems to be a difficult one for the Indian gem and jewellery industry so far as gold imports are concerned,” Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation said at the Reuters Global Gold Forum.

Ads by Google

More from Business

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...