| Date: |
11-03-2016 |
| Subject: |
Gold imports may be cut sharply keeping current account deficit under control |
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KOLKATA: The strike by gold traders over the imposition of 1% excise duty may end up helping the government as imports of the metal are expected to be cut sharply in March from a year earlier, keeping the current account deficit under control. The strike has also brought down the premium on gold.
"No consignments of gold bar, dore gold and gold jewellery have arrived in the last 10 days as the requirement for the metal has dried up once the strike was announced. The government will be able to narrow down the country's CAD situation," said Mukesh Kothari, a director at RiddiSiddhi Bullions, a gold dealer.
India's CADis likely to narrow to 0.7% of GDP in the current financial year from 1.3% in FY15 owing to lower commodity prices, Nomura said in a report.
Source : economictimes.indiatimes.com
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