India tightens gold import norms for export houses

Updated: Wed, Oct 18, 2017
09:22 pm
Reuters
RELATED NEWS
Global Markets - U.S. stocks edge up on defense, healthcare gains; pound firms Global Markets - U.S. stocks edge up on defense, healthcare gains; pound firms
Silver futures surge 0.11% on global cues Silver futures surge 0.11% on global cues
Aluminium futures up 0.11% on spot demand, global cues Aluminium futures up 0.11% on spot demand, global cues
ECB concerned by reports Spanish bank BBVA hired firm to spy in 2004 - sources ECB concerned by reports Spanish bank BBVA hired firm to spy in 2004 - sources
Indian air safety watchdog orders extra checks on planes with Pratt & Whitney engines Indian air safety watchdog orders extra checks on planes with Pratt & Whitney engines

India tightened gold import norms for export houses by restricting them from importing the yellow metal only for export purposes and not for selling in the domestic market, the government said in a circular on Wednesday.

"...are permitted to import gold as input only for the purpose of manufacture and export by themselves during the remaining validity period of the Nominated Agency certificate," the government said in the circular.

Some export houses, which account for nearly a quarter of total imports by India, were taking advantage of India`s free trade agreement with neighbouring countries and importing the bullion without paying import duty, prompting the government to impose these curbs, analysts said.

"A few export houses were selling gold at a discount in local market in last few months as they were not paying import duty," said a Mumbai-based dealer with a private bank, who was not authorised to speak to media.

"Their selling in local market will stop with this change and bank`s business will increase."

India is the world`s second largest gold consumer importing on an average 75 tonnes every month in 2017 before tapering to 48 tonnes in September.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

By continuing to use the site, you agree to the use of cookies. You can find out more by clicking this link

Close