Press Esc to close
Wednesday 17 September 2014
News updated at 2:54 AM IST
Weather
Max: 0°C
Min : 0°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
An Israeli army armoured bulldozer drives in the Israeli occupied Golan Heights...

An Israeli army armoured bulldozer drives in the Israeli occupied Golan Heights...

Members of Iraqi security forces and tribal fighters prepare a mortar launcher...

Members of Iraqi security forces and tribal fighters prepare a mortar launcher...

Rajasthan Congress President Sachin Pilot celebrates with party workers the party's victory...

Rajasthan Congress President Sachin Pilot celebrates with party workers the party's victory...

Shahrukh Khan and Deepika Padukone at the music launch of the film 'Happy New Year'...

Shahrukh Khan and Deepika Padukone at the music launch of the film 'Happy New Year'...

Volunteers rescuing flood affected people in Chattabal area in Srinagar...

Volunteers rescuing flood affected people in Chattabal area in Srinagar...

Army personnel build a bridge in the flood affected area of Kotranka Tehsil in Rajouri in Jammu...

Army personnel build a bridge in the flood affected area of Kotranka Tehsil in Rajouri in Jammu...

An aerial view of the partially deluged Centaur hotel in Srinagar...

An aerial view of the partially deluged Centaur hotel in Srinagar...

A view flood-hit Abi Guzar residential area in Srinagar ...

A view flood-hit Abi Guzar residential area in Srinagar ...

Prime Minister Narendra Modi being received by O P Kohli,  Anandiben Patel and Amit Shah...

Prime Minister Narendra Modi being received by O P Kohli, Anandiben Patel and Amit Shah...

Children lying in mud during Buka Bhaona festival in Jorhat...

Children lying in mud during Buka Bhaona festival in Jorhat...

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