business-standard, in its January 8, 2014 article, reports that INDIA's Gold imports may fall 40% to decadal low.
Extract :
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Gold imports in the current financial year could be
lower by 40 per cent at 515 tonnes against 846 tonnes a year ago. This will
be the lowest in 10 years. In December, imports are expected at 20 tonnes.
While this will help curtail the current account deficit, it is a bad piece
of news for jewellers who have to buy gold at huge premiums or smuggle it.
Traders
attribute the fall to gold controls, including linking imports to exports,
known as the 80:20 rule (20 per cent to be exported)
and a 10 per cent custom duty. Imports surged in the first two months of the
current financial year to 304 tonnes, but following
a strict import regime, these have plummeted since June. From June to
December, net imports have been 152 tonnes, half
the April-May figure of 304 tonnes. The trend is
not looking any better in the March quarter in which the industry expects
60-70 tonnes of imports.
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