Government may look at re-imposing gold import restrictions

The rise in India’s gold imports in the recent past, especially in September 2014, when imports rose almost five times on (y-o-y basis) to 3.75 billion (around 95 tonnes), is being looked upon as one of the major factors leading to the widening of the country’s trade deficit of $14.2 billion in September from $10.8 billion in the previous month. Following this, the Indian government is considering re-imposing restrictions on gold imports, after Diwali festivities this year, reports add. The Commerce Ministry will hold a meeting inviting representatives from RBI and stakeholders of bullion and gold industry to tackle the issue. The meeting will also discuss issues faced by the gold jewellery and bullion industry, concerning premium and star trading firms not selling them the imported gold for further exports, reports add.