Press Esc to close
Sunday 26 March 2017
News updated at 2:06 AM IST

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
A delegation of FIFA U-17 Football World Cup at DY Patil Stadium in Navi Mumbai on Saturday...

A delegation of FIFA U-17 Football World Cup at DY Patil Stadium in Navi Mumbai on Saturday...

Artists Kashmir perform at fifth Rashtriya Sanskriti Mahotsav (RSM) organized by North East Zone...

Artists Kashmir perform at fifth Rashtriya Sanskriti Mahotsav (RSM) organized by North East Zone...

President Donald Trump, flanked by Health and Human Services Secretary Tom Price...

President Donald Trump, flanked by Health and Human Services Secretary Tom Price...

New Mobile Medical Unit vehicle are launched by Karnataka Health and Family Welfare Department...

New Mobile Medical Unit vehicle are launched by Karnataka Health and Family Welfare Department...

Map of India with BJP symbol- Lotus, during the Panch Parmeshwar Sammelan for the MCD elections...

Map of India with BJP symbol- Lotus, during the Panch Parmeshwar Sammelan for the MCD elections...

Bollywood actor Shilpa Shetty during the launch of Saffola breakfast cereal, in Mumbai...

Bollywood actor Shilpa Shetty during the launch of Saffola breakfast cereal, in Mumbai...

A farmer from Tamil Nadu state climbs a tree in a bid to commit suicide, but was later coaxed down..

A farmer from Tamil Nadu state climbs a tree in a bid to commit suicide, but was later coaxed down..

Union Home Minister Rajnath Singh pinning stars on the shoulders of a cadet during passing out...

Union Home Minister Rajnath Singh pinning stars on the shoulders of a cadet during passing out...

Women with their faces painted to on the eve of 60th Earth Hour in Muradabad on Saturday...

Women with their faces painted to on the eve of 60th Earth Hour in Muradabad on Saturday...

Indian cricketers pose with series trophy before the start of last test match against Australia...

Indian cricketers pose with series trophy before the start of last test match against Australia...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523