Anand Sharma expresses concern over rise in gold imports

Commerce and Industry Minister Anand Sharma has expressed concern over the rise in import of gold, and said that steps would be taken to prevent trade of the yellow metal.

Sharma, who met Finance Minister P. Chidambaram here last evening to discuss the corrective measures that need to be taken, said: "There are serious concerns. We cannot allow this situation where gold exports in the last two months have reached a stage which is causing a huge stress, and therefore there will be correctives, banks have taken the corrective measures. And, I am going to review it."

"And, we will ensure that only for actual uses gold is imported, not for trading purposes. That is what gems and jewelleries, or the gold refineries, one of the gold refineries that the country has. For the rest, no, I don't think it should be allowed for trading," he added.

India imported 162 tonnes of gold in April, raising concerns that the current account deficit that touched a record high of 6.7 per cent of GDP in October-December 2012 quarter may not fall much in the new fiscal.

The high current account deficit has also reduced the room for the Reserve Bank of India to cut rates to prop up the economy.