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Tuesday, 12th July 2005 (5781 views)

India has authorised a further liberalisation of the rules regarding gold imports.<br/><br/>The government has authorised more entities to import in addition to the current list of some 17 agencies that include trading houses and banks. <br/><br/>The Indian ministry of finance is seeking to justify the decision on the basis that it would ensure adequate supply in the market for the benefit of consumers. <br/><br/>During 2004-05 India imported 770 tonnes of gold, up from 450 tonnes in the early 2000s.<br/><br/>Liberalising gold imports will, in theory, lead to substantial resource outflows and would help jewellery makers and others to access the yellow metal freely without having to go through intermediaries.<br/><br/>Many commentators in the country have argued for a free-trade regime in commodities and unrestricted gold imports-provided there is optimal resource allocation. <br/><br/>However, gold in India is used mainly used for hoarding, or for the production of household ornaments.<br/><img alt="track" src="http://feeds.directnews.org.uk/feedtrack/dn.gif?feedid=196&itemid=15004154"/>

 

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