Will look into gold restrictions: PC
18 Feb 2014 12:17 AM GMT
‘There are pros and cons to relaxing restrictions. We will weigh them carefully and take a decision....We have to keep in mind the goal is to contain the CAD at a level where it can be safely and fully financed.
‘Keeping that goal in mind, if anything can be done, we will certainly look into it. The operative word is 'we will look into it',’ Finance Minister P Chidambaram said during his interaction with reporters post presentation of interim budget.
The minister, however said he cannot make any announcements because Parliament is in session. High gold import was one of the major reasons for India's record CAD of $88 billion in the last fiscal, which in turn was putting pressure on value of rupee.
In the first two months of the current fiscal, the imports had crossed 300 tonnes. To restrict the gold import, the government raised the customs duty thrice to 10 per cent in 2013. The RBI too imposed several restrictions, including linking the gold import to exports.
Chidambaram said the curbs on gold import were ‘absolutely necessary’ for India's economic health and the restrictions have helped.
He said that India cannot afford to import gold worth $50-60 billion a year as it leads to foreign exchange outgo. The steps by the Government and RBI led to a huge drop in gold imports that slowed to about 19 tonnes in November.
Jewellery stocks lose 3 per cent shine
Mumbai: Trimming most of their initial losses, jewellery stocks that reversed early gains ended up to 3 per cent lower as the interim Budget on Monday made no recommendation for bringing down the import duty on gold. Shares of PC Jeweller closed 2.66 per cent down after falling 11.24 per cent in intra-day on the BSE. Titan Company fell by 1.23 per cent, while Shree Ganesh Jewellery House was down 0.91 per cent and Gitanjali Gems went down by 0.61 per cent. Jewellery stocks rallied in morning trade on anticipation of a cut in import duty, but reversed gains after no such mention was made in the Budget for the next financial year.
‘Keeping that goal in mind, if anything can be done, we will certainly look into it. The operative word is 'we will look into it',’ Finance Minister P Chidambaram said during his interaction with reporters post presentation of interim budget.
The minister, however said he cannot make any announcements because Parliament is in session. High gold import was one of the major reasons for India's record CAD of $88 billion in the last fiscal, which in turn was putting pressure on value of rupee.
In the first two months of the current fiscal, the imports had crossed 300 tonnes. To restrict the gold import, the government raised the customs duty thrice to 10 per cent in 2013. The RBI too imposed several restrictions, including linking the gold import to exports.
Chidambaram said the curbs on gold import were ‘absolutely necessary’ for India's economic health and the restrictions have helped.
He said that India cannot afford to import gold worth $50-60 billion a year as it leads to foreign exchange outgo. The steps by the Government and RBI led to a huge drop in gold imports that slowed to about 19 tonnes in November.
Jewellery stocks lose 3 per cent shine
Mumbai: Trimming most of their initial losses, jewellery stocks that reversed early gains ended up to 3 per cent lower as the interim Budget on Monday made no recommendation for bringing down the import duty on gold. Shares of PC Jeweller closed 2.66 per cent down after falling 11.24 per cent in intra-day on the BSE. Titan Company fell by 1.23 per cent, while Shree Ganesh Jewellery House was down 0.91 per cent and Gitanjali Gems went down by 0.61 per cent. Jewellery stocks rallied in morning trade on anticipation of a cut in import duty, but reversed gains after no such mention was made in the Budget for the next financial year.
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