February 27, 2013 / 10:33 AM / 5 years ago

Gold imports likely to fall on lower inflation: Rajan

Chief economic adviser Raghuram Rajan pauses during a news conference in New Delhi February 27, 2013. REUTERS/Adnan Abidi

NEW DELHI (Reuters) - India’s gold imports are likely to come down because of lower inflation and more attractive financial instruments for saving, said Raghuram Rajan, the finance minister’s top economic adviser, on Wednesday.

Gold, used as an inflation hedge by Indian savers, is a major driver of the country’s record current account deficit and the government raised tariffs on imports of the metal this year. Inflation has trended downward in recent months.

Reporting By Rajesh Kumar Singh; Writing by Frank Jack Daniel; Editing by Arup Roychoudhury

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