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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% in April.
India, the world's biggest buyer of gold, hiked its import duty to 6% 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% 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.
