Press Esc to close
Tuesday 24 May 2016
News updated at 1:19 PM IST
Weather
Max: 34.1°C
Min : 22.7°C
In Bengaluru
Sunny day

Economic Survey calls for curb on oil, gold imports

New Delhi, Feb 27, 2013, DHNS:

Import duty on gold was hiked to 6%

The pre-Budget Economic Survey on Wednesday laid emphasis on reducing imports of gold and oil, which posed a huge risk to India’s growing current account deficit.

 “The room to increase exports in the short run is limited, the main focus has to be on curbing imports, mainly by making oil prices more market-determined and curbing import of gold to contain current account deficit (CAD),” the Survey said.

 It also suggested making financial saving instruments more attractive to discourage people from investing in gold. The increasing gold rush, according to the Survey, is persistent high inflation and lack of other attractive saving instruments.

"The rising demand for gold is only a 'symptom' of more fundamental problems in the economy.

Curbing inflation, expanding financial inclusion, offering new products such as inflation indexed bonds, and improving saver access to financial products are all of paramount importance," it said.

 The Chief Economic Advisor Raghuram Rajan said that gold and oil were the main contributors to rising CAD.

“The key number that we worry about is the CAD...at over 5 per cent (it) is way too high. In my view 2.5-3 per cent of the GDP is the level we should not exceed," he said.

 The government last month hiked import duty on gold by 2 percentage points to 6 per cent, but the step yielded little results, since gold imports in the same month rose over 15 per cent.

 This has also given rise to the expectation that the government may resort to further hike in gold import duty in the Budget to be presented on Thursday.


Go to Top

Photo Gallery
Tamil Nadu Governor K Rosaiah after the oath of secrecy to Chief Minister  J Jayalalithaa at the ...

Tamil Nadu Governor K Rosaiah after the oath of secrecy to Chief Minister J Jayalalithaa at the ...

Wailing relatives paying floral tributes to the three policemen who were shot dead by militants ....

Wailing relatives paying floral tributes to the three policemen who were shot dead by militants ....

School students performing band show during passing out parade at the Sheeri Training Centre in  ...

School students performing band show during passing out parade at the Sheeri Training Centre in ...

Village women carry earthen pots & plastic containers to collect drinking water on Hot summer day...

Village women carry earthen pots & plastic containers to collect drinking water on Hot summer day...

BJP workers busy putting party posters in the streets of Guwahati on Monday, on the eve of oath ....

BJP workers busy putting party posters in the streets of Guwahati on Monday, on the eve of oath ....

Members of Communist Party of India (Marxist) staged a protest against BJP-RSS for the attack on ...

Members of Communist Party of India (Marxist) staged a protest against BJP-RSS for the attack on ...

Cyclists pedal during the 14th stage of the Giro D'Italia, Tour of Italy cycling race...

Cyclists pedal during the 14th stage of the Giro D'Italia, Tour of Italy cycling race...

Bayern's Robert Lewandowski holds up the trophy after the German soccer cup...

Bayern's Robert Lewandowski holds up the trophy after the German soccer cup...

A man walks on a road flooded with rain water at Khurai Lai Wangma, Imphal East on Sunday...

A man walks on a road flooded with rain water at Khurai Lai Wangma, Imphal East on Sunday...

Bollywood actor Shilpa Shetty with husband Raj Kundra celebrate their son Viaan's birthday...

Bollywood actor Shilpa Shetty with husband Raj Kundra celebrate their son Viaan's birthday...

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