Press Esc to close
Friday 03 July 2015
News updated at 2:34 AM IST
Weather
Max: 31°C
Min : 21°C
In Bengaluru
Partially cloudy

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
Indian High Commissioner Ranjan Mathai hosts two winners of the Queen's Young Leaders award...

Indian High Commissioner Ranjan Mathai hosts two winners of the Queen's Young Leaders award...

Engine of Delhi - Rewari passenger train catches fire near Garhi Harsaru village in Gurgaon...

Engine of Delhi - Rewari passenger train catches fire near Garhi Harsaru village in Gurgaon...

Actor-couple Soha Ali Khan and Kunal Khemu at an event in Bengaluru...

Actor-couple Soha Ali Khan and Kunal Khemu at an event in Bengaluru...

Bollywood actress Yami Gautam during a promotional event in Mumbai...

Bollywood actress Yami Gautam during a promotional event in Mumbai...

Union Home Minister Rajnath Singh during a visit to the Hazratbal shrine in Srinagar...

Union Home Minister Rajnath Singh during a visit to the Hazratbal shrine in Srinagar...

Sadhus eat meals from a community kitchen as they wait to register for  Amarnath cave shrine...

Sadhus eat meals from a community kitchen as they wait to register for Amarnath cave shrine...

Security personnel keep vigil from the moutains near the holy Amarnath shrine, Baltal...

Security personnel keep vigil from the moutains near the holy Amarnath shrine, Baltal...

A security jawan patrols as pilgrims move towards holy cave shrine of Amarnath...

A security jawan patrols as pilgrims move towards holy cave shrine of Amarnath...

Bollywood actors Rishi Kapoor and Asin Thottumkal at the trailer launch of the film All is Well...

Bollywood actors Rishi Kapoor and Asin Thottumkal at the trailer launch of the film All is Well...

Priyanka Chopra interacts with media persons on Preventing Anaemia...

Priyanka Chopra interacts with media persons on Preventing Anaemia...

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