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Removal of import restrictions on gold has not resulted in a spurt in inflow of the yellow metal, the Survey has observed.
Net imports of gems and jewellery in 2014-15 could actually reduce by an estimated $130 million due to a reduction in international gold prices by $10 per troy oz, assuming no change in quantum of imports, the survey added.
80:20 schemeThere was speculation within the industry on whether the government was contemplating re-imposition of the 80:20 scheme — which mandated importers to re-export 20 per cent of imports after value addition — but the observations in the Survey indicate that it may not be in a hurry to do so.
“Since the elimination of restrictions on gold in November, its imports have fallen well below the elevated levels seen in 2013,” the Survey said.
Declining international prices as well as moderating inflation have meant that gold imports averaged $1.3 billion in December 2014 and $1.6 billion in January 2015 compared with $4.2 billion in October 2014 and $5.6 billion in November 2014.
In 2013-14, because of the sharp depreciation of the rupee owing to domestic and external factors, the government placed restrictions on gold imports that led to a sharp decline of 46.4 per cent, the Survey observed.
But, the overall trade performance in the current year and the check in current account deficit signalled an opportune time for withdrawal of restrictions on gold imports, it said.
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