NEW DELHI (Reuters) - India cannot afford high levels of gold imports and may review its import policy, Finance Minister P. Chidambaram said on Monday, after imports of precious metals jumped more than 150 percent in April.
India, the world's biggest buyer of gold, hiked its import duty to 6 percent in January in an attempt to limit purchases and rein in a record high current account deficit. Gold is the second biggest import item after crude oil.
Gold prices on the Multi Commodity Exchange rose to a session high of 27,015 rupees per 10 grams after Chidambaram's remarks, before easing back to trade 0.63 percent higher at 26,980 rupees.
On May 13, the RBI introduced more restrictions on purchases for jewellers and banks as it also weighs in to curb imports.
(Reporting by Manoj Kumar; writing by Siddesh Mayenkar; Editing by Jo Winterbottom)
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app