Press Esc to close
Sunday 31 August 2014
News updated at 8:51 AM IST
Weather
Max: 0°C
Min : 0°C
In Bangalore
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
Mayawati is garlanded after she was unanimously elected as the National President of BSP for...

Mayawati is garlanded after she was unanimously elected as the National President of BSP for...

Protesters set a police vehicle on fire in Ukhrul on Saturday demanding immediate solution to...

Protesters set a police vehicle on fire in Ukhrul on Saturday demanding immediate solution to...

Traffic chaos in Surat on Saturday...

Traffic chaos in Surat on Saturday...

A 98-metre long under construction bridge collapses over a stream of Bagmati and Lakhani rivers...

A 98-metre long under construction bridge collapses over a stream of Bagmati and Lakhani rivers...

Sukumar, a Bangalore airport customs officer supporter of Hubli Tigers seen during KPL Match...

Sukumar, a Bangalore airport customs officer supporter of Hubli Tigers seen during KPL Match...

Clay Ganpati referees the Brazilian and Argentine undeers (mouse) have been installed by a family...

Clay Ganpati referees the Brazilian and Argentine undeers (mouse) have been installed by a family...

Hindu devotees light incense and offer prayers to a snake on Nag Panchami festival in Jammu...

Hindu devotees light incense and offer prayers to a snake on Nag Panchami festival in Jammu...

A Hindu devotee whisper her wishes into the ear of an idol of elephant-headed Hindu god...

A Hindu devotee whisper her wishes into the ear of an idol of elephant-headed Hindu god...

England's Morgan leaves the field after being dismissed for 10 runs during the ODI against India ...

England's Morgan leaves the field after being dismissed for 10 runs during the ODI against India ...

Union Finance Minister Arun Jaitley at a press conference at National Media Centre in New Delhi ...

Union Finance Minister Arun Jaitley at a press conference at National Media Centre in New Delhi ...

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