Gold industry worried that govt will curb imports to stem CAD, rupee fall

Experts argue past restrictions have resulted in smuggling. They recommend safer alternatives to achieve govt's aims

The government's decision to put curbs on imports of non-essential commodities has sent ripples through the gold industry. In the past too, the yellow metal drew attention when the rupee fell sharply in a short period. While the finance ministry is yet to clarify imports of which commodities will face curbs, the bullion industry is worried and considering steps so that curbs don't harm the industry's growth.

The reason for its proactive approach is that curbs put in place during the rupee's 2013 rout such as raising import duty to 10 per cent in phases and announcement of the 80:20