Desperate to axe India's gold habit, govt mulls yellow metal-linked schemes to curb import
The Reserve Bank has unveiled a slew of curbs on gold purchase and financing as imports touched a record high last year, pushing up the current account deficit to a historic high of 4.2 per cent in the year.
In the 2011-12 fiscal, India's gold imports stood at USD 60 billion and the quantum of import was 1,067 tonnes.
A Finance Ministry official said the imports have shown signs of moderation and that gives the government hope that the CAD will be lower this fiscal.
In the April-June quarter of the current fiscal, however, gold imports had contracted by 18.4 per cent year-on-year to Rs 71,912 crore (USD 13 billion).
Gold imports into the country has risen considerably in the last three-four years.
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