Union commerce minister Anand Sharma said he was in favour of a review of the country's gold import regulations, and added that he would discuss the matter with finance minister P Chidambaram shortly.
While the finance minister has said that a review of the subject wouldn't be possible before the budget, Sharma said, "We will revisit this matter and see how to have a balance."
The All India Gems and Jewellery Trade Federation had earlier written to UPA chairperson Sonia Gandhi demanding a reduction in import duty on gold to 2% from 10%. The industry body had also demanded relaxation of RBI's 80:20 rule on gold imports, wherein merchants have to re-export 20% of each gold consignment before placing orders for a fresh shipment.
This 80:20 rule resulted in lower bullion imports, which subsequently helped in lowering the country's ballooning current account deficit. Last week, Sonia Gandhi had requested the commerce ministry to look into the request of the gems and jewellery industry stakeholders.
"We have by and large gone with the revenue department and the RBI on the matter. We are equally keen to ensure that we remain strong and competitive in the gems and jewellery sector," Sharma said on the sidelines of the CII Partnership Summit 2014 in Bangalore.
Sharma also said the government was thinking of opening up the construction sector to FDI to re-energize economic activity in this sector, which is a large employer. "We are also looking at FDI in the railway sector," said Sharma. He said that in the last four years India had received FDI worth $176 billion.
Over 1,000 delegates from 45 countries are participating in the Confederation of Indian Industry's Partnership Summit 2014, being held in Bangalore from January 27 to 29. The summit will highlight investment opportunities in India and offer ideas for how a new class of consumers can become a new engine for growth. The theme of the event is 'Emerging global value chains: building partnerships'.
Source;- timesofindia.indiatimes.com
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