Imported Gold in India just got costlier. The Government today increased the import duty on gold to six percent from four percent with immediate effect, in a bid to cut the current account deficit.
Talking to reporters here, Economic Affairs Secretary Arvind Mayaram said the move was aimed at discouraging import of the precious metal.
“The duties will be reviewed after some time if there is a moderation in the quantity of gold that is imported into the country,” Mayaram said.
Gold is the major reason for the ballooning current account deficit in India, which is the largest importer of the precious metal.
India’s current account deficit widened to a record high of 5.4 percent of Gross Domestic Product during July-September quarter of 2012-13, according to the latest RBI data.