India turns screw again on gold imports
NEW DELHI (REUTERS) - India turned the screw on gold buying again on Wednesday, banning imports of coins and medallions and making domestic buyers pay cash, a day after hiking bullion import duty to a record 10 per cent.
The government is trying to curb apparently insatiable demand from Indians for gold which sent its current account deficit to a record in 2012/13, but although buying slowed in June it revived in July, triggering the latest restraints.
All imports of gold will now need a licence from the foreign trade office and will have to be brought into a customs bonded warehouse, Economic Affairs Secretary Arvind Mayaram said.
He added that unrefined gold would be added to existing rules stipulating that 20 per cent of all imports must be used for export, which is usually in the form of jewellery.