Gold import restrictions likely to spur smuggling
The Dollar Business Bureau | @TheDollarBiz India's gold imports in FY2013-14 have declined about 34% from previous year India’s Finance minister Arun Jaitley says that the duty on gold imports is unlikely to change until the current account deficit (CAD) improves further, which means that prices and smuggling of gold could rise sharply this year. Last year, the government increased the customs duty on gold to 10% to contain the current account deficit (CAD) which stood at around $88 billion or 4.7% of Gross Domestic Product (GDP) in FY2012-13. The trade balance improved during FY2013-14 and CAD declined to around $32.4 billion or 1.7% of GDP during 2013-14. High duties and other measures such as the 80:20 (export-import) rule ...
