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Gold import will remain compressed in 2013-14: Chidambaram

Last Updated: Friday, November 1, 2013 - 21:37

New Delhi: Unfazed by spurt in gold import in October, Finance Minister P Chidambaram on Friday said the inward shipment of the precious metal will remain severely compressed in the current fiscal.

Gold imports rose to 23.5 tonnes in October from 11.164 tonnes in September.

"I am not worried of imports of about 23.5 tonnes. Hope it remains at a level of about 20 tonnes a month in which event at the end of the year gold imports would have been severely compressed and that would be a very good sign for the current account deficit," he told reporters here.

Gold imports in July and August stood at 47.75 tonnes and 3.38 tonnes respectively. In 2012-13 fiscal, gold imports stood at 845 tonnes.

Chidambaram said with the decline in gold import and improvement in exports, the CAD in the current fiscal would be contained at USD 60 billion, lower than USD 88.2 billion in 2012-13.

High gold imports was one of the main reasons that pushed CAD - the difference between the inflow and outflow of foreign exchange - to a record high of 4.8 percent of GDP, or USD 88.2 billion, in the previous financial year.

The government has hiked import duty on gold to 10 percent in third revision this year in a bid to curb the surging imports and burgeoning CAD.

CAD for April-June was USD 21.8 billion or 4.9 percent of GDP.

First Published: Friday, November 1, 2013 - 21:37
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