India's Gold Jewelry Imports Surged 10% in First Quarter 2014-15.

NEW DELHI : India’s apex trade body GJEPC said that the gold jewelry imports during first quarter of 2014-15 FY surged by 10 pct to Rs 696.44 crore. This surge in imports is due to the increased imports of finished jewelry from abroad because of the high gold premiums.

But, the gold bars imports decreased marginally by 3.32% to Rs 8,261.88 crore during the period April-June 2014-15, when compared to Rs 8,545.73 crore in same period last fiscal year.

Imports of gold bar decreased as the 20:80 gold imports rule was seen effective this year, GJEPC added. According to this 20:80 Rule, it was compulsory to re-export 20% of all bullion imports. However, with the relaxed gold import norms, the shipment of gold bars is expected to increase.

Decline of gold premium in the market, after the import norms relaxation by RBI, has decreased the import volume in June and also the shipments are expected to drop further. The premium on gold has decreased to Rs 1 per gram from Rs 200 per gram of April.

In May, RBI relaxed the norms of gold imports, allowing selected trading houses and permitted banks to procure gold to increase the exports.

Source : metal.com