Duty on gold may rise to 6% to curb imports
Unless the pace of gold imports slackened, “we may be left with no choice but to make it a little more expensive to import gold. This matter is under government’s consideration,” finance minister P Chidambaram said Wednesday.
He did not specify the measures planned to curb gold imports, which is one reasons along with crude oil imports for the current account deficit to climb to a record 5.4 per cent in the second quarter of this fiscal year. The deficit for the first half was 4.6 per cent.
The high deficit means India has to finance it through a surge in the inflow of foreign capital as direct investment or through capital markets or boost exports. These options are considered tough in the current weak global economic conditions.
Meanwhile, a Working Group of the Reserve Bank of India has proposed a host of steps to curtail the demand for gold. It has said that there is a need to revisit the debate on setting up of Gold Corporation or Gold Bank in India. Gold bonds and gold
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