India scraps restrictions on gold imports
FT.com
2 hours ago
India has scrapped controversial restrictions on gold imports that have triggered a spike in smuggling and crippled the country's jewellery industry.
On Friday the Reserve Bank of India reversed rules that force agencies importing the precious metal to set aside a fifth of all shipments for re-export, reports Avantika Chilkoti in Mumbai.
The restrictions were put in place in the middle of last year as a currency crisis swept through emerging markets and the Reserve Bank of India scrambled to control the current account deficit.
The move comes despite the recent increase in gold imports.
Official data show gold imports reached 106.3 tonnes, or $4.2bn, this October, almost four times the shipments in the same period a year earlier.
India overtook China to regain its position as the world's largest consumer of gold in the third quarter of this year, according to the World Gold Council, with demand reaching 225 tonnes in the three-month period.
