Press Esc to close
Tuesday 21 October 2014
News updated at 3:16 AM IST
Weather
Max: 30.8°C
Min : 20.1°C
In Bangalore
Sunny day

Import curbs will spur gold smuggling

Mumbai, Dec 1, 2012, PTI:

Rangarajan fears illegal shipments already rising

PMEAC Chairman C Rangarajan on Saturday said banning gold imports will push up its smuggling and stated that there are already indications that illegal shipments of the precious metal have gone up in the last three months.

“If we ban gold imports, the smuggling will go up... there are already indications that smuggling of gold has gone up in the last three months,” C Rangarajan, Chairman of Prime Minister’s Economic Advisory Council (PMEAC), said here.

He was addressing the silver jubilee celebrations of RBI-promoted Indira Gandhi Institute of Development Research.


“I believe gold imports will come down when inflation goes down,” he added. Gold is considered as a hedge against price rise. Rangarajan said he has been told by Revenue Department officials that the seizures of smuggled gold have gone up in the recent past.

In the same event, Reserve Bank Governor D Subbarao reiterated his concerns over rising gold imports and cited its pressure on current account deficit. He, however, said, “RBI has not put any new restriction on gold imports. Our announcement to stop lending for gold purchase was a reiteration of decades-old decision.”

Rangarajan said that last year, gold imports touched $60 billion, of which $15-20 billion was due to high inflation as people use the precious metal as a hedge against inflation.
RBI Deputy Governor Subir Gokarn had recently called for dematerilisation of the metal to discourage its physical possession, hoping that this move will trim imports.

Traditionally, India has been the world’s largest consumer and importer of gold. Last year, imports was to the tune of 969 tonnes. However, doubling of the excise duty to 4 per cent in the last budget and the curbs that RBI imposed on gold loan value (down from 85-90 per cent of the value of jewellery to 60 per cent) and banning banks from funding gold purchase by loan companies have led to drop in imports. In April-October, imports declined 35 per cent year-on-year and overall imports is set to drop over 17 per cent to 800 tonnes this year.

Go to Top

Photo Gallery
Army recruits during their attestation parade at Madras Regimental Centre, Wellington, Ooty on...

Army recruits during their attestation parade at Madras Regimental Centre, Wellington, Ooty on...

In this Wednesday, Oct. 15, 2014 photo, a Kashmiri woman blocks a road during a protest demanding...

In this Wednesday, Oct. 15, 2014 photo, a Kashmiri woman blocks a road during a protest demanding...

Prime Minister Narendra Modi at the 42nd Convocation of the All India Institute of Medical...

Prime Minister Narendra Modi at the 42nd Convocation of the All India Institute of Medical...

Devendra Fadnavis hugs his mother Savita after his victory during the Assembly election in...

Devendra Fadnavis hugs his mother Savita after his victory during the Assembly election in...

Union Minister of State for Commerce and Industry, Nirmala Sitaraman launching the Online Export...

Union Minister of State for Commerce and Industry, Nirmala Sitaraman launching the Online Export...

Prime Minister Narendra Modi with BJP President Amit Shah after the party's parliamentary...

Prime Minister Narendra Modi with BJP President Amit Shah after the party's parliamentary...

In this Oct. 17, 2014 photo, a thick blanket of smoke is seen against the setting sun as...

In this Oct. 17, 2014 photo, a thick blanket of smoke is seen against the setting sun as...

In this Monday, Oct. 13, 2014 photo, an Indian woman uses her hand to put sawdust in an...

In this Monday, Oct. 13, 2014 photo, an Indian woman uses her hand to put sawdust in an...

(L-R) Asha Bhat, Miss Diva Universe 2014 2nd runner up, Noyonita Lodh, Miss Diva Universe 2014...

(L-R) Asha Bhat, Miss Diva Universe 2014 2nd runner up, Noyonita Lodh, Miss Diva Universe 2014...

An Indian man teaches yoga postures to schoolchildren at Delhi Public School in Hyderabad...

An Indian man teaches yoga postures to schoolchildren at Delhi Public School in Hyderabad...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523