Reuters Market Eye - Finance Minister Chidambaram says government considering raising cost of gold imports, a key contributor to India's record current account deficit and thus a pressure on the rupee.
Gold imports showed some moderation in July-September, with bullion's share of total imports declining to 8.9 percent compared to 11.6 percent in same quarter in previous year, says Yes Bank.
Gold imports may have risen in the October-December quarter which included the Diwali and marriage season, and imports may remain high as real returns from domestic deposits remain low, says Kotak Mahindra Bank.
RBI is pushing for gold being held via exchange traded funds, inflation linked bonds as alternatives.
(Reporting by Subhadip Sircar)
Trending On Reuters
Ready for Rate Hike
Two years ago India was a "fragile five" economy growing at 5 percent, facing a severe current account deficit and the rupee at record lows as the U.S. Fed Reserve prepared to taper its stimulus programme. Today, two years into the term of RBI Governor Raghuram Rajan, India is set to confidently face the Fed's first rate rise since 2006. Full Article