India Gold Import Eases Despite Rule Change

India’s gold imports eased in recent times even after government scrapped a rule mandating traders to export 20% of all gold imported into the country, according to reports.

Market sources said the uncertainty in the scenario contributed to the lower import as bullion banks and traders await clarifications on new import policies.

Even the customs, awaiting directions from the Reserve Bank of India on the new import procedures, were not clearing fresh imports, prompting importing agencies to hold back.

India is the world's second-biggest bullion buyer scrapped a rule late last month mandating traders to export 20% of all gold imported into the country, even as the market was expecting it to tighten the curbs.

Struggling with a high trade deficit, India last year imposed a record 10% import duty on gold and the so-called 80-20 rule to limit purchases.