Press Esc to close
Tuesday 25 November 2014
News updated at 3:23 AM IST
Weather
Max: 0°C
Min : 0°C
In Bengaluru
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
Bengaluru pride march for freedom, equality, justice

Bengaluru pride march for freedom, equality, justice

Asia Cup Championship for Deaf 2014

Asia Cup Championship for Deaf 2014

Kashmiri Pandit's protest against Jammu Police

Kashmiri Pandit's protest against Jammu Police

Bridal Fashion show of Trousseau week by Mirrors and Within, Latha Puttanna (Shristhi), Apranje

Bridal Fashion show of Trousseau week by Mirrors and Within, Latha Puttanna (Shristhi), Apranje

Winter Session of Parliament

Winter Session of Parliament

Mercedes F1 driver Lewis Hamilton of Britain celebrates after winning the Abu Dhabi F1 Grand Prix

Mercedes F1 driver Lewis Hamilton of Britain celebrates after winning the Abu Dhabi F1 Grand Prix

Winners of Delhi Half Marathon 2014

Winners of Delhi Half Marathon 2014

Elderly women take part in Tug-of War during annual month long sports competition...

Elderly women take part in Tug-of War during annual month long sports competition...

A tigress in a playfull mood at the Maharajbag Zoo in Nagpur, Maharashtra...

A tigress in a playfull mood at the Maharajbag Zoo in Nagpur, Maharashtra...

Indian Air Force (IAF) Sukhoi Su-30 fighter aircrafts make a formation in the shape...

Indian Air Force (IAF) Sukhoi Su-30 fighter aircrafts make a formation in the shape...

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