Reuters Market Eye - Nomura says India's hike in the gold import tax will only shift gold shipments to "unofficial channels".
"Therefore, in our view imposing import duty tackles the symptom, not the cause," Nomura says in a note.
India's gold imports likely to ease to $44 billion in fiscal 2014 from an estimated $48.3 billion in fiscal 2013 in value terms, marking a 0.2 percentage point drop, Nomura estimates.
Nomura says current account deficit could moderate to 4.3 percent of GDP in FY14 from an estimated 4.9 percent in FY13, "remaining above sustainable levels," due to high oil prices and continued domestic supply-side constraints that boost imports.
(Reporting by Subhadip Sircar)
Trending On Reuters
Eighteen village councils in Uttar Pradesh are demanding a local Coca-Cola bottling plant be prohibited from extracting water from the ground, claiming its over usage has led to water scarcity in the area, said an environmental campaign group. Full Article