Gold Jewellery Import Restrictions

The government on Wednesday imposed import restrictions on certain gold jewellery and articles, a move which would help cut the import of non-essential items.

The government has tried to curb costly bullion imports and put restrictions on cash transactions.

Commerce and Industry Minister Nirmala Sitharaman has pitched for 'restriction free' imports of gold to help gems and jewellery exports and also discourage smuggling.

Gold imports surged 19.5 per cent to $34.32 billion in fiscal year 2014-15 due to declining prices and easing of restrictions by the Reserve Bank of India.

India, the world's second-largest gold buyer, is likely to announce some new measures to rein in gold imports which might include restrictions on a group of private trading firms.

The RBI allowed "star trading houses", private jewellery exporters which had been barred from importing gold since July 2013, to resume imports, with immediate effect, it said in a statement.

India is likely to see less than 500 tonnes of gold import in the ongoing financial year (FY14) if the government does not relax the import restrictions, according to an industry body.

Non-resident Indians (NRIs) are bringing gold into the country by taking advantage of rules that allow each individual to carry 1 kg of the metal, helping traders cope with restrictions on imports during the peak wedding season.

India, which is fighting hard to reduce its current account deficit, has brought in measures to restrict imports of gold -- its second-biggest import item after oil -- which has affected the jewellery sector.

Despite demand, gold jewellery sales are likely to decline by up to 60 per cent this festive season due to a stock crunch following restrictions on imports, say industry experts.

Describing the recent restrictions imposed by the Reserve Bank of India (RBI) on import of gold by jewellery exporters as "onerous", the Commerce Ministry has pitched for relaxation of norms for inward shipments of the precious metal.

India sharpened measures to curb imports of the yellow metal by hiking the import duty and restricting consignment imports, after shipments jumped to more than 300 tonnes in April and May.

Gold imports are estimated to fall by around 24 per cent to about 38 tonnes in June following restrictions on imports and jeweller associations banning sale of coins and bars, an industry body has said.

Any import of gold will now be allowed only for meeting exporters' need of gold jewellery, the RBI said in a statement.

Gold buying in India, the world's biggest buyer of the metal, came to a halt on Tuesday, a day after the Reserve Bank of India (RBI) restricted gold imports on consignment basis and jewellery sellers saw a sharp rise in festival sales.

The government on Wednesday imposed import restrictions on certain gold jewellery and articles, a move which would help cut the import of non-essential items.

The government has tried to curb costly bullion imports and put restrictions on cash transactions.

Commerce and Industry Minister Nirmala Sitharaman has pitched for 'restriction free' imports of gold to help gems and jewellery exports and also discourage smuggling.

Gold imports surged 19.5 per cent to $34.32 billion in fiscal year 2014-15 due to declining prices and easing of restrictions by the Reserve Bank of India.

India, the world's second-largest gold buyer, is likely to announce some new measures to rein in gold imports which might include restrictions on a group of private trading firms.

The RBI allowed "star trading houses", private jewellery exporters which had been barred from importing gold since July 2013, to resume imports, with immediate effect, it said in a statement.

India is likely to see less than 500 tonnes of gold import in the ongoing financial year (FY14) if the government does not relax the import restrictions, according to an industry body.

Non-resident Indians (NRIs) are bringing gold into the country by taking advantage of rules that allow each individual to carry 1 kg of the metal, helping traders cope with restrictions on imports during the peak wedding season.

India, which is fighting hard to reduce its current account deficit, has brought in measures to restrict imports of gold -- its second-biggest import item after oil -- which has affected the jewellery sector.

Despite demand, gold jewellery sales are likely to decline by up to 60 per cent this festive season due to a stock crunch following restrictions on imports, say industry experts.

Describing the recent restrictions imposed by the Reserve Bank of India (RBI) on import of gold by jewellery exporters as "onerous", the Commerce Ministry has pitched for relaxation of norms for inward shipments of the precious metal.

India sharpened measures to curb imports of the yellow metal by hiking the import duty and restricting consignment imports, after shipments jumped to more than 300 tonnes in April and May.

Gold imports are estimated to fall by around 24 per cent to about 38 tonnes in June following restrictions on imports and jeweller associations banning sale of coins and bars, an industry body has said.

Any import of gold will now be allowed only for meeting exporters' need of gold jewellery, the RBI said in a statement.

Gold buying in India, the world's biggest buyer of the metal, came to a halt on Tuesday, a day after the Reserve Bank of India (RBI) restricted gold imports on consignment basis and jewellery sellers saw a sharp rise in festival sales.