Press Esc to close
Saturday 22 November 2014
News updated at 2:40 AM IST
Weather
Max: 28°C
Min : 18°C
In Bengaluru
Sunny day

Duty hike on gold imports aimed at defreezing idle stock: FM

Hong Kong, Jan 22, 2013 (PTI)
Finance Minister P Chidambaram. File Photo

 Finance Minister P Chidambaram today said the government's restrictive policy on gold is aimed at moderating imports and increasing its supply by defreezing idle domestic stock.

"I only hope import of gold moderates. We do not have to spend so much foreign exchange to import gold," he told reporters when asked about the reasons for hiking import duty on gold from 4 per cent to 6 per cent.

Referring to the other measure of linking Gold Exchange Traded Fund (ETF) with Gold Deposit Schemes, Chidambaram said it is an attempt to unfreeze the gold stock and bring them back into circulation.


"If that gold comes into circulation, the jewellers will demand less of import of gold," he said.

Aimed at curbing gold imports and relying more on domestic supply, the government yesterday linked Gold ETF with gold deposit scheme.

The move will enable mutual funds to unlock their physical gold held in ETF and invest in gold-deposit schemes offered by banks.

"We want to unfreeze stock of gold in India and bring it back to circulation for which we announced some measures yesterday so that part of the gold stock lying unused is unfrozen and comes back into circulation.

"What we are trying to do is while acknowledging that people want to buy gold we are trying to moderate import of gold...," Chidambaram said.

Following the announcement of hike in duty by the government, gold prices have shot up by over Rs 300 to Rs 31,290 per 10 grams.

"As I said love for gold is a powerful factor in India," he said, adding that the government is not looking at any predetermined level of gold import.

Go to Top

Photo Gallery
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...

Players during the 3rd day of IBSF World Snooker Championship in Bengaluru...

Players during the 3rd day of IBSF World Snooker Championship in Bengaluru...

Interim President, BCCI Shivlal Yadav felicitates Indian cricketer Rohit Sharma at the BCCI...

Interim President, BCCI Shivlal Yadav felicitates Indian cricketer Rohit Sharma at the BCCI...

Migratory birds arrive to make nest at tree at Islampur in Birbhum district of West Bengal...

Migratory birds arrive to make nest at tree at Islampur in Birbhum district of West Bengal...

Decommissioned warship, INS Vikrant being wrecked at Darukhana ship breaking yard in Mumbai...

Decommissioned warship, INS Vikrant being wrecked at Darukhana ship breaking yard in Mumbai...

Indian Air Force (IAF) helicopters make a formation during a parade for presentation...

Indian Air Force (IAF) helicopters make a formation during a parade for presentation...

Indian Coast Guard launching Interceptor Boat c-416 at Hazira, Surat...

Indian Coast Guard launching Interceptor Boat c-416 at Hazira, Surat...

Arun Jaitley with Mega actors Amitabh Bachchan and Rajinikanth...

Arun Jaitley with Mega actors Amitabh Bachchan and Rajinikanth...

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