India to Adapt Wait and Watch Policy on Gold Import

Days after easing norms for gold imports, a top Indian official said the country would like to wait and watch and then take steps, if required.

Commerce Secretary Rajeev Kher said the six-fold rise in gold imports is a matter of concern but the government will adopt a wait and watch stand and take a call at an appropriate time.

“Trade deficit is a concern. Gold imports phenomenally have risen six times. Definitely, it is a concern but only a few days ago, we have come up with a revision of our gold import policy.

“I am sure the government would like to watch the consequences of that. So we will wait and take a call at an appropriate time. We will have to wait and see how the next month follows,” the Commerce Secretary said.

He said while a big rise in gold imports is a matter of concern, the situation has also to be seen in the context of whether this increase could result in improvement of India’s exports of gems and jewellery.

India’s gold imports in November stood at $5.6 billion against $835 million in November 2013. In quantity terms, the shipments had increased to 151.58 tonnes in November against about 40 tonnes in October.