Faced with 5-fold rise in gold imports that is pushing up the current account deficit, Finance Minister Arun Jaitley Monday said the government would look at re-imposing curbs on gold imports after Diwali.
"Government agencies are raiding and seizing gold at various places and asking to reconcile the (gold bar) number with the imported gold," said India Bullion and Jewellers Association (IBJA) general secretary Surendra Mehta.
Notwithstanding the likelihood of the current account deficit (CAD) narrowing to less than USD 50 billion, Finance Minister P Chidambaram Monday made a case for continuing some kind of restriction on gold imports.
Gold imports have fallen sharply to USD 650 million in August on account of a slew of steps taken by government to curb inbound shipments of the precious metal, a development that will help narrow the record current account deficit.
A trade body Wednesday said the restriction on import of gold imposed recently by the government may bring short-term benefits but warned it would do more harm than good for the nation in the long run.
Within days of hiking import duty on gold, Chief Economic Advisor Raghuram Rajan Monday said government could take more steps to curb demand for the precious metal amidst widening current account deficit.
Global rating agency Moody's Thursday said the government's decision to issue about Rs 15,000 crore inflation bonds in the current fiscal in its bid to curb demand for gold is unlikely to have any positive impact on the country's rating.
World Gold Council Tuesday said that curbing gold import may have short-term benefit in containing demand, but cautioned that consumers’ appetite for yellow metal will ultimately be fulfilled by the unauthorised grey market.