The measures taken by Centre and Reserve Bank to keep a check on Gold Imports in the country have failed miserable. As part of the latest measure, the import duty on gold jewellery has been upped from 10 percent to 15 percent. This move is to protect the domestic jewellery industry by reducing the imports.
Every year, About 800-900 tones of gold which costs around 50 billion dollars have been imported to India. This is leading to the rise in current account deficit.
Currently, World's top gold consumer left the import duty on bullion unchanged at 10 percent. As import duty on gold is now higher than that of bullion, Price conscious consumers would be forced to purchase the jewellery in India itself. However, experts say this hike will only have minimal impact as jewellery accounts just a small portion of India's gold imports.
Every year, About 800-900 tones of gold which costs around 50 billion dollars have been imported to India. This is leading to the rise in current account deficit.
Currently, World's top gold consumer left the import duty on bullion unchanged at 10 percent. As import duty on gold is now higher than that of bullion, Price conscious consumers would be forced to purchase the jewellery in India itself. However, experts say this hike will only have minimal impact as jewellery accounts just a small portion of India's gold imports.