Cut in gold imports to keep current account deficit under control

Zee Media Bureau

New Delhi: Gold traders all over the country may be on strike against imposition of 1 percent excise duty in the recently tabled budget, the government is not stressed big time as the protest is helping it to observe a sharp cut in imports of the yellow metal in March from a year earlier. It has helped in keeping current account deficit (CAD) under control, as per a report in Times of India.

In addition, the strike of bullion traders has helped to keep the premium on gold low.

The report further adds that in the last 10 days no consignment of gold bar, dore gold and gold jewellery has arrived due to the ongoing strike. It has immensely helped the government in keeping CAD low in the month of March.

India's CAD is likely to narrow to 0.7 percent of GDP in the present financial year from 1.3 percent  in FY15 due to lower commodity prices, Nomura said in a report.