Indian Gold Exports Continue Declining

Gold purchases by India, the world’s largest user, may fall 5.3 percent this year as the government curbs imports to contain a record current-account deficit.
Inbound shipments are seen at 800 metric tons in the 12 months through March, compared with 845 tons a year earlier, Economic Affairs Secretary Arvind Mayaram told reporters in New Delhi today. Falling bullion imports may help the nation cap the current-account deficit at $70 billion this year, he said.
India raised the tax on imports for a third time this year in August to curtail gold demand and tackle the record deficit that weakened the rupee to an all-time low. Higher taxes and tighter rules on financing imports have reduced demand, prompting analysts including Goldman Sachs Group Inc. to predict a moderation in the nation’s broadest measure of trade.

via Bloomberg

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