19-Sep-2013
Top officials of the ministries of finance and commerce will meet tomorrow on the issue of gold import restrictions that have hit jewellery exporters.
The meeting "is on making gold available for exporters," Commerce Secretary S R Rao told PTI.
Major gold importers and industry officials will also be part of the meeting.
In a letter to Economic Affairs Secretary Arvind Mayaram, Rao has described the restrictions imposed by RBI on import of gold by jewellery exporters as "onerous".
Rao has suggested that the condition of providing proof of export before allowing import of next consignment of gold should be done away with for the exporters of gems and jewellery.
Gold imports into India have declined significantly since July 22 when the RBI introduced 80:20 norm under which 20 per cent of the total imports had to be re-exported.
On this norm, bullion traders and retail jewellers expressed serious concern that gold could get costlier for both jewellery makers and consumers.
According to an industry experts, customs authorities are not clear about how to implement the 80:20 rule.
India's gold jewellery exports nosedived 70 per cent year -on-year to $ 441.41 million in July on account of shortage of precious metal and limited inventory in domestic market.
In 2012-13, India imported 845-850 tonne gold. The government imposed restrictions on gold imports to contain the widening trade as well as current account deficit.
India's gold imports in August dipped to $ 0.65 billion from $ 2.9 billion in July, and a record $ 8.4 billion in May.
Source:- economictimes.indiatimes.com
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