The government will review and may revisit some of the restrictions imposed on gold imports by March end, Finance Minister P Chidambaram said yesterday.
Chidambaram hinted at easing the curbs if there is a firm grip on the current account deficit (CAD).
India hiked duties on gold import to 10% last year to control the current account deficit that soared to more $88bn in 2012-13.
“I am confident that by the end of the (financial) year, we will be able to revisit some of the restrictions on gold imports. But let me hasten to add we will do so only when we are absolutely sure that we have a firm grip on CAD,” Chidambaram said.
The finance minister said the restrictions helped in containing the current account deficit and to improve the balance of payments position.
Commerce and Industry Minister Anand Sharma said he favoured easing the curbs to help the gems and jewellery industry reeling under shortage of the yellow metal.
“I am for a review of the import policy by the finance ministry and the Reserve Bank of India (RBI) to ensure equitable and strong playing field to the gems and jewellery industry,” Sharma said.
He backed Congress president Sonia Gandhi’s call to relax import norms on gold, and said he would soon meet Chidambaram and director-general of the foreign trade office to discuss changes needed in the policy.
“It is for the finance ministry and the RBI to take the final call. I can only discuss and recommend policy review, as it is essential to import gold for exporting finished goods,” Sharma said.
On the flip side, Sharma said higher curbs opened up the metal to grey area of smuggling and pressure on supply side.
In a letter to Chidamabaram last week, Gandhi sought easing import curbs on gold as the measure affected the export traders.
