Modi Charms Jewelers By Dropping Gold prices to Rs 27,900 per 10 gm
Gold | 2014-05-26 07:39:39
The newly elected Narendra Modi led government has lifted the hope of the gems and Jewelry industry before its swearing by relaxing the sturdy gold import rules.
By Paul Ploumis
NEW DELHI (Scrap Monster): The newly elected Narendra Modi led government has lifted the hope of the gems and Jewelry industry even before its swearing by relaxing the sturdy gold import rules. Mr. Modi’s recent tweet “good times are ahead” has rocked over the social networking world with splendid colors.
Last year the jewelers had made several appeals to the then ruling United Progressive Alliance (UPA) government to reverse the severe gold import duties which shattered their business. Unfortunately, the government remained reluctant to thier pleas.
As RBI permitted some private agencies to import precious metal under 80:20 scheme, gold prices plunged to Rs 27,900 per 10 grams from Rs 29,500, and the premium on gold fell to Rs 85,000 per kg.
However, the gold import norms were necessary while the country’s current account deficit escalating dangerously that siphoned the value of Indian Rupee. The RBI’s restrictions brought down the gold import to 190 tons from 860 tons last year.
It is said that if the new BJP government lift the 10 percent import duty on gold, the yellow metal prices would fall to Rs. 20,000 per kg. The lifting of high import duty would also ensure that enough gold is available in the market. This in turn may put breaks on gold smuggling acts.
