India's gold import headache to resume after June plunge - Indian Express

Reuters : New Delhi, Mumbai, Mon Jul 08 2013, 16:45 hrs India's gold imports could pick up in the next few months after slumping 81 percent in June as falling prices spur buying, a government source said, adding to New Delhi's anxiety over a record-low rupee and a wide current account deficit. Indians snapped up a record 162 tonnes of gold in May, prompting a hike in import duty to 8 percent and tight restrictions on supplies at the world's biggest buyer. In Pics: Jaguar F-Type model launch in India Gold is second only to crude oil in India's import bill, which the government wants to cut back to ease the current account deficit and help the weak rupee back on its feet. "Gold imports came down in June to around 31.5 tonnes. But they are expected to go up again," a senior government official, who is familiar with the gold import data, said, adding that with the fall in gold prices, people were already buying more of the metal in the domestic market. That would still mean imports in the fiscal year are on track for a record, beating 2011's 969 tonnes and threatening to blow out the current account deficit, which hit a record 4.8 percent of gross domestic product in the last fiscal year. India is expected to officially release by mid-July economic data that gives the value of June gold imports. The prime minister has now summoned industry leaders to a crunch meeting on July 29 on the deficit and the tumbling rupee, which hit a record low of 61.21 against the U.S. dollar earlier in the day. Industry experts and analysts said gold imports could pick up as demand remained strong despite difficulties in obtaining supplies, raising the possibility of further action from the government or the central bank to curb appetite. ... contd. ALSO READ Reliance Capital's private equity exits DTDC, sells stake to French company for Rs 158 cr BSE Sensex falls as Indian rupee hits record low, ICICI Bank shares hit Ganesha coins minted in Germany, issued from Africa! Mutual funds garner Rs 37,000 cr from investors in May Please read our terms of use before posting comments TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s). via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNEslo_IYh0vUQXSXWSXhSGr16VMjA&url=http://www.indianexpress.com/news/india-s-gold-import-headache-to-resume-after-june-plunge/1139103/

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