Mumbai: With gold imports putting pressure on the current account deficit, the Reserve Bank on Monday imposed restrictions on import of the yellow metal by banks. "To moderate the demand for gold for domestic use, it has been decided to restrict the import of gold on consignment basis by banks, only to meet the genuine needs of exporters of gold jewellery," the RBI said in a statement.
As per a data released on Monday by the government, gold and silver imports during April, 2013 jumped by 138 per cent to $7.5 billion against $3.1 billion in the year-ago period. Due to high gold imports, the country's trade deficit in April widened to $17.8 billion year on year.
Higher trade deficit in turn puts pressure on CAD, which has been described as the biggest risk to the Indian economy by the RBI. The CAD, which is difference between the outflow and inflow of foreign currency, touched a record high of 6.7 per cent in the October-December quarter on the back of rising oil and gold imports.
The RBI's decision to impose restrictions on gold imports follows recommendations of a Working Group on Gold which had suggested aligning gold import regulations with rest of the imports for creating a level playing field between gold imports and other imports. Nominated banks and agencies were permitted to import gold on loan basis, suppliers credit/buyers credit basis, consignment basis as also on unfixed price basis....
03:36 PM, May 13, 2013
Washington: Finance Minister P Chidambaram on Friday said the three stimulus packages India had provided to the economy in the wake of the global financial crisis post 2008-09 lead to a higher fiscal deficit, inflation and slowdown in growth. He said the government is going to take more steps on the supply side to bring down the inflation and ensure 7 per cent growth rate in 2014. The three stimulus...
03:10 AM, Apr 20, 2013
New Delhi: The Finance Ministry on Friday made a strong case for rating upgrade of Indian economy by global agency Fitch on the back of increasing investments, declining import of gold and government's commitment to fiscal prudence. The issue of rating upgrade was raised by Finance Ministry officials at a meeting with the representatives of Fitch here. The meeting was attended by Department of Economic Affairs Secretary Arvind Mayaram, among...
04:53 PM, Apr 12, 2013
Mumbai: Reserve Bank Governor D Subbarao has said that price stability was necessary for ensuring sustainable growth in the long term as it helps investors and consumers to take informed decisions. "There might be some trade-off in the short term but in the medium to long term, you need price stability for investors and consumers to make informed choices, a necessary condition to stimulate growth", he said in an interview...
05:00 AM, Apr 05, 2013
>Asserting that India has to sort many internal issues, Finance Minister P Chidambaram on Monday said containing fiscal deficit, current account deficit and inflation are big challenges that country is facing currently. However, he maintained that the problems were being addressed and that fiscal deficit will reach the target of 3 per cent in 2016-17. ...
06:40 PM, Apr 01, 2013
Undeterred by adverse political developments, Finance Minister P Chidambaram on Wednesday said there will be no let up in the government's efforts to continue with the economic reforms and he will go ahead with his meetings with foreign investors to persuade them to invest in India. ...
02:50 PM, Mar 20, 2013
The Reserve Bank of India (RBI) is expected to cut its key policy rate on Tuesday for the second time in 2013 to help revive a faltering economy, taking comfort from moderating core price pressures and the government's commitment to trim the fiscal deficit. ...
05:28 AM, Mar 19, 2013
India's high food inflation is a negative for the country's sovereign ratings as it filters through the broader economy, with adverse consequences for growth and the large fiscal and current account deficits, Moody's said on Monday. ...
10:59 AM, Mar 18, 2013
The Finance Ministry feels there is a case for a rating upgrade of India by at least a notch or so and agencies like Standard & Poor's and Fitch would be conveyed this view when they visit India next month. "I strongly believe there is a case for S&P and Fitch to upgrade. Even if it is one only notch or two notch above, but certainly there is no case...
11:56 AM, Mar 17, 2013
Goa Chief Minister Manohar Parrikar will have to do a balancing act when he presents the budget on Monday with revenues falling due to ban on mining activity and some of the recent measures taken by the government putting strain on state finances. ...
05:53 AM, Mar 16, 2013
Seeking to dispel fears over the state of economy, Finance Minister P Chidambaram on Thursday said the country will return to high growth of 7 per cent in two years and promised adequate public spending to stimulate it. Replying to a debate on the Budget 2013-14 in the Lok Sabha, he said the government was committed to ensuring reduction of fiscal deficit from 5.2 per cent to 3 per cent...
11:15 PM, Mar 14, 2013
India's 2013/14 budget unveiled last week offers a "realistic" plan to meet the country's fiscal deficit target, and should be a credit positive for its sovereign ratings, Moody's Investors Service said in a report on Monday. ...
11:35 AM, Mar 04, 2013
Investors sentiments were spooked because rules were tighten in the Budget 13-14 for those based in Mauritius, seeking to avoid double taxes. Overseas investors will also have to provide the certificate that they are the final beneficiaries apart from the residency certificate. ...
10:15 AM, Mar 01, 2013
The Reserve Bank on Thursday welcomed the General Budget, saying it has laid the foundation for lowering fiscal and current account deficits, apart from supporting both domestic and foreign investments. The central bank said the government's net market borrowing target of around Rs 5 lakh crore (budget estimate for the next fiscal is Rs 4.84 lakh crore) is manageable. ...
05:46 PM, Feb 28, 2013
The fiscal deficit for the current financial year has been contained at 5.2 per cent of GDP, lower than 5.3 per cent as was targeted, Finance Minister P Chidambaram said today. "The fiscal deficit for 2012-13 has been contained at 5.2 per cent. I propose to bring it down to 4.8 per cent by 2013-14," Chidambaram said while unveiling Budget 2013-14 proposals in the Lok Sabha. ...
01:48 PM, Feb 28, 2013
Former RBI governor YV Reddy said that the government should increase fiscal expenditure, as the private sector cannot meet the rising demand for water, sanitation and public health. ...
04:12 PM, Feb 26, 2013
Sistema emerged as the only operator bidding in an auction of airwaves in India, a sign that the government may have to drop the reserve price of remaining airwaves to attract interest, analysts said. ...
12:21 AM, Feb 26, 2013
The government is badly cash-strapped and the growth is the lowest in the decade and India have a high fiscal deficit. ...
11:57 PM, Feb 25, 2013
Microsec has come out with its report on Budget preview. According to the research firm, priorities before the Government in the FY13-14 is even more demanding than what it was last year as almost all the economic indicators have further aggravated and now needs larger attention. ...
04:24 PM, Feb 25, 2013
Motilal Oswal has come out with its report on Budget preview. The research firm expects fiscal deficit to be restrained within 4.9 per cent of GDP in FY14. Signs of improvement in the fiscal situation are visible. Tax collections remain robust. Significant expenditure cuts have also been effected. We estimate fiscal deficit at 5.4 per cent of GDP for FY13. ...
02:54 PM, Feb 25, 2013
