India’s Gold Imports Restriction Unlikely to Be Lifted: Khosla.

The current gold imports curbs in India are likely to remain in force to protect the rupee and check the current account gap, managing director of the largest refiner in the country said today.

The curbs will keep imports within the 650 metric tons to 700 tons range in the 12 months started April 1, from 650 tons the prior year, in the opinion of MMTC-PAMP India Pvt’s Rajesh Khosla. Stats from the finance ministry show 845 tons were bought in 2012-2013.

While the import limits might take varying shapes, the government will continue to control buying, Khosla said in an interview.

As Bloomberg reports, India is the world’s second-largest buyer of gold, and accounted for about 25% of global purchases in 2013. Restrictions by Prime Minister Manmohan Singh need 20% of shipments into the country channeled to jewelers for export and 80% sold on the local market.

The Prime Minister also increased taxation on imports and only allows banks and entities appointed by the government to import gold.

Source : forexminute.com