Gold import duty hiked to 6%, ETFs to earn on physical gold
These measures were taken in consultation with Sebi and RBI and these two regulators will soon modify their guidelines reflecting the changes in norms. Banks will notify the changes in the gold deposit scheme.
The CAD had widened to an all-time high of 5.4% of GDP in July-September. Gold imports in April-December stood at $38 billion.
The decision to hike gold import duty earlier this fiscal seemed to have not had a big impact as gold imports stood at $10.46 billion in the second quarter, a fall of just $1 billion from the earlier quarter.
Owing to the sharp fall in exports and a rather small fall in imports, the trade deficit widened to $147.2 billion in the first nine months of the fiscal, up from $137.3 billion in the same period previous year.
Mayaram said it was difficult to immediately estimate the impact of these measures on CAD, but expressed confidence that gold imports will moderate.
Though the inflation indicator wholesale price index (WPI) had fallen to a three-year low in December 2012 to 7.18%, annual consumer price inflation was still high at 10.56% in December, up from 9.9% in November 2012. Owing to the high inflation, people prefer parking their money in gold, considered one of the
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