India wants to reimpose curbs on gold imports
The Indian finance ministry has written to the Reserve Bank of India to consider reimposing some restrictions on gold imports after inbound shipments surged in the last few months, widening the trade deficit, the Economic Times reported on Monday.
The central bank eased some gold import rules in May by allowing seven more private agencies to ship in the precious metal, driving a sharp jump in overseas buying despite a record import duty of 10 percent.
A 450 percent rise in gold imports expanded the trade deficit to an 18-month high of $14.25 billion in September, creating concerns for the government, an unidentified finance ministry official told the Economic Times.
Gold is India's second-biggest expense on imports after oil, and shipments of the metal tend to jump ahead of key festivals in October.
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