Impact and Implications of Government Measures to Curb Gold Imports: An Analysis Dr Balaji C. D.1,*, Dr Kumar S. Praveen2,** 1Professor of Finance, Department of Business Administration (MBA), Panimalar Engineering College, Chennai 2Associate Professor of Marketing, Department of Business Administration (MBA), Panimalar Engineering College, Chennai *Email: cdbalaji2004@rediffmail.com
**professorpraveen@yahoo.co.in
Online published on 10 October, 2013. Abstract The government has recently hiked the import duty on gold and platinum from 6 per cent to 8 per cent, the second increase in six months and the third increase in about a year. Import duty on gold which was 2 per cent in 2011 has been hiked to the current level of 8 per cent. This consistent increase in the import duty has been done with the objective of curbing rising gold imports which show no signs of abating. Gold and silver imports which were $3.1 billion in April 12 raised to $7.5 billion in 2012–13, an increase of over 138 percent. On volume terms while gold imports averaged 70 tons during the first two months of the last fiscal, it May 2013 alone, gold imports were 162 tons. This paper discusses the trend in India's gold imports, the global scenario with regard to gold, the past and present measures taken by the government to curb gold imports and the way forward. Top Keywords Gold Imports, Current Account Deficit, Central Bank Purchases. Top |