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 per cent compared to 11.6 per cent 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.
Copyright @ Thomson Reuters 2012
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
