Showing posts with label foreign exchange outflows. Show all posts
Showing posts with label foreign exchange outflows. Show all posts

Gold imports rise 65% in June to $3.12 bn



Economic spoiler: Gold imports rise 65% in June
After past its best for seven months in a row, bullion imports grew by 65.13 per cent to $3.12 billion in June.
Import of gold bars in June 2013 stood at $1.88 billion.
The high imports have slightly pushed up the country's deal shortfall to $11.76 billion in June from $11.28 billion in the same month last year.
In October 2013, gold imports had risen 62.5 per cent to $1.3 billion.
The government has forced limitations on inbound shipments of the costly metal to thin the present explanation shortage. India's CAD, which is the glut of foreign exchange outflows over inflows, touched a momentous high of 4.8 per cent of GDP in 2012-13, mainly due to increasing imports of petroleum harvest and gold.
A high CAD puts heaviness on the rupee, which in turn makes imports classy and fuels price rises.
The government had augmented customs obligation on gold to 10 per cent and barred import of bullion coins and medallions, while the RBI linked imports of the metal to exports.
India is the main importer of gold, which is mainly utilized to meet the command of the jewelers commerce.
The Commerce and business Ministry is headfirst for reduction of the gold import limits to boost gems and jewellery exports, which declined by 5 per cent in June to $3.31 billion.
According to experts, decline in bullion prices in the international market have pressed up imports in the realm.
Gold in New York, which in general sets price trend on the marital front, fell by 0.7 per cent to $1,297.10 an ounce after moving $1,292.60, the lowly since June 19.