India’s gold imports are likely to come down to $38 billion from $53.8 billion this fiscal despite some demand pick-up during the forthcoming festival season, Chairman of Prime Minister’s Economic Advisory Council C. Rangarajan today said.
The latest numbers for July and August indicate a sharp decline in the import of gold. However, the low import trend may reverse a little in the coming months because of festival season, he said.
“We do expect gold import to come down substantially during this year... with the present regulations...gold import may come down to the level we have indicated that is $38 billion,” he said.
Gold import, which totalled $53.8 billion during last fiscal, is one of the major reasons for India’s record high current account deficit (CAD) of $88.2 billion in 2012-13.
Hence, the Government raised the Customs duty on gold to 10 per cent and RBI had put in import restrictions on banks and other agencies in this regard to tackle the situation.
Rangarajan further said India really needed to ensure that the declining trend in gold import is maintained in the future as well.
PMEAC has projected gold and silver imports at $40 billion this fiscal against $55.8 billion shipped during last fiscal.