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MARKET EYE-India's gold duty hike to push shipments to 'unofficial channels'- Nomura
January 22, 2013 / 3:49 AM / 5 years ago

MARKET EYE-India's gold duty hike to push shipments to 'unofficial channels'- Nomura

* 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. 

 (subhadip.sircar@thomsonreuters.com /
subhadip.sircar.thomsonreuters.com@reuters.net)

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