SME Times News Bureau | 23 Dec, 2013
The Commerce
Ministry has asked its Finance counterpart to ease restrictions on import of
gold, a move, which, if implemented, would come as a relief to jewellery exporters.
In a letter to
Economic Affairs Secretary, Arvind Mayaram, Commerce Secretary S.R. Rao has
asked him to "look into the matter (gold imports by exporters) and issue
necessary instructions to the RBI for removal of the anomaly," a news agency
report has quoted Rao as saying.
"This (Commerce)
department is repeatedly receiving representations from stakeholders in the
matter and our exports are suffering," Rao said in the letter.
To check rising
Current Account Deficit (CAD), the RBI had in August imposed curbs on import of
gold and also laid down various pre-conditions for inward shipment of the
precious metal.
The RBI circular
issued on August 14 had said that all entities should ensure that at least
one-fifth, or 20 percent, of every lot of import of gold is exclusively made
available for the purpose of exports and the balance for domestic use.
Rao also pointed out
that as the "Foreign Trade Policy (FTP) does not prohibit exporting first and
then importing (for replenishment), the prohibition imputed by the Department
of revenue based on the RBI circular does not appear to be in order".
Gems and jewellery
sector, which is a major consumer of imported gold, account for about 15 percent of India’a total exports.
In the April-October
period, gems and jewellery exports stood at $24 billion, accounting for 14 percent of total outward shipments.