Economic Survey says India has enough dollars, remove restrictions on gold import

The Finance Minister may be readying to take off the import curbs imposed on gold in Budget 2015 and the surest sign of it may be the Economic Survey which says that the overall trade performance of the Indian economy showed it was time to do so.

The Indian government had imposed restrictions on gold imports in 2013 when a wide current account deficit had sparked the worst currency turmoil since a 1991 balance of payments crisis.

“The Economic Survey says the overall trade performance signals an opportune time for withdrawal of restrictions on gold,” a release from the government said.

The survey has also pointed out that inflows in excess of financial requirements has boosted India’s forex reserves to $328.7 billion by January-end.

“These have helped the lessen the vulnerability concern that led to serious stress last year,” the survey noted.

The Economic Survey pointed out that India’s trade deficit had fallen from 2012-13 high of $190.3 billion to $135.8 billion. The decline in growth of imports was particularly evident in the case of gold and silver imports which saw negative growth.

The government has been steadily easing import norms since 2014 like scrapping a rule that traders have to export 20 percent of all good imports. India is the second largest importer of gold in the world presently, trailing only China.