No more hike on Gold Import Rate

Finding slashed Gold Imports, government rules down further hike over custom duty on Thursday. The aim is to improve the Current Account Deficit (CAD) of the Nation.

"Net gold imports, averaged USD 135 million a day, in first 13 business day in May till May 20. However, in the subsequent 14 business days, it averaged only USD 36 million, so gold imports have sharply come down. But I would be happy if they come down even further," says P.Chidambaram, Finance Minister.

Huge gold imports have put pressure on the country's Current Account Deficit (CAD), which in turn is affecting the value of rupee.

Pointing out that there are other financial instruments which provide better returns than gold, Chidambaram urged people not to invest in gold.

"Suppose people of India don't import gold for one year, the whole situation will dramatically change. If we can have it for six months, one year, it will dramatically change the situation of CAD. And we will see its positive impact on every other index that measures the economy-- stock market, exchange rates, interest rates," Chidambaram said.