INSUBCONTINENT EXCLUSIVE:
India is among the biggest importers of gold with imports of over $33.65 billion in the last fiscal.The government would soon bring out an
integrated gold policy and set up a domestic gold council to promote growth in the sector, Commerce Minister Suresh Prabhu said on Friday
Prabhu said the government is also looking at the industry's demand for cutting import duty on gold to four per cent from the current 10
"This is one of the important issues for the industry that is export-oriented
If you have import duties, the working capital gets blocked up
So, we are already working on that."At the same time, the Finance Ministry has a responsibility to curtail the CAD (current account
deficit), therefore, they are also trying to find out how we can keep the imports under control
So, we have to balance both together," the minister told reporters at the India Gold and Jewellery Summit here.India is among the biggest
importers of the yellow metal with imports of over $33.65 billion in the last fiscal
As a result, the country's CAD widened to 2.4 per cent of the GDP in the first quarter of 2018-19.Prabhu also said he has taken up with
the Finance Ministry the question of ensuring adequate availability of credit to the gems and jewellery sector."I have again taken up the
issue with the Finance Ministry and we will make sure that the industry is not starved of necessary finances," he said.The gems and
jewellery sector is facing a major credit crunch due to banks being hesitant to lend following the Rs 14,000 crore fraud on state-run Punjab
National Bank committed by diamantaire Nirav Modi and his uncle Mehul Choksi who are absconding since the crime was reported by the bank in
up of the council.Finance Minister Arun Jaitley had, in February, announced the government's intent to formulate a comprehensive gold
policy in order to develop gold as an asset class.
