India’s gold imports to be throttled
The finance minister of India said his government will be taking further steps to dampen gold imports, according to a report by Bullion Street.
P. Chidambaram, who made the comments in London, said gold imports are causing a $64 billion fiscal deficit.
“Some measures may cause immediate pain but this was necessary to ensure that the fiscal deficit came down to 3 per cent in the next three years. Steps were also being taken to contain the Current Account Deficit.”
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2 Comments
Sri
No matter how the government tries to control gold imports, indians will continue to invest in gold.Reason is simple. There are no alternatives to gold as investment. People in india dont trust stock markets because they feel it is rigged/manipulated in some form or the other. people cant put money in deposits in banks as the interest rates are negative and inflation is adding insult to injury. Real estate is so hot that it will crash any moment in india. The only available, accessible investment alternative is gold.
hkm
“…gold imports are causing a $64 billion fiscal deficit.”
Nonsense! The “fiscal deficit” is constituted in paper while gold is tangible money.
Only a fool would exchange physical for paper to “balance” a paper deficit.