India easing gold import restrictions

By Frik Els
MINING.com

india160Long the top importer of gold, India fell behind China in 2013.

The decline in gold consumption came after bullion import duties were pushed up tenfold — from 1% at the start of 2012 to 10% — and other rules such as mandatory re-export of 20% of imports, transaction taxes and even curbs on ETF buying stymied India’s gold industry.

Business-friendly prime minister elect Narendra Modi’s sweeping victory has raised hopes inside the country that promises of relief for the gold industry that employs more than 3 million traders and shopworkers would be kept.

Last week gold was boosted by news that the Reserve Bank of India is relaxing the much-maligned 80-20 import-export measure.

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