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