Gold duty hike 'tackles the symptom, not the cause'

Tue Jan 22, 2013 9:21am IST

A shopkeeper displays gold jewellery inside his showroom in Jammu September 15, 2008. REUTERS/Amit Gupta/Files

A shopkeeper displays gold jewellery inside his showroom in Jammu September 15, 2008.

Credit: Reuters/Amit Gupta/Files

Related Topics

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)

FILED UNDER:
  • Most Popular
  • Most Shared

Insight

REUTERS SHOWCASE

Border Talks

Border Talks

India names Ajit Doval as special envoy for China border talks.  Full Article 

WTO Deal

WTO Deal

U.S. seeks to step up India trade talks  Full Article 

Phone Masts

Phone Masts

American Tower to buy Bharti Nigeria phone masts for $1.1 billion  Full Article 

Infrastructure Plan

Infrastructure Plan

India targets private cash to build railways to its ports.  Full Article 

Shadow Banking

Shadow Banking

Reserve Bank planning more measures for NBFCs.  Full Article 

Auto Sector

Auto Sector

Hyundai Motor, Kia Motors lift 2014 global sales target on China, emerging markets  Full Article 

Oil Prices

Oil Prices

Some fund managers see oil falling to $60 without OPEC cut.  Full Article 

Project Shelved

Project Shelved

Jindal Steel shelves $10 bln project after coal setback.  Full Article 

Market Eye

Market Eye

Sensex, Nifty rise to record after China, ECB stimulus boosts risk appetite.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage