The Government, on Wednesday, said that rising amount of gold imports was no cause for an ‘alarm’ and action would be taken at an appropriate time.

Gold imports in March nearly doubled to $4.98 billion. In January and February, it rose to $1.55 billion and $1.98 billion, respectively. “The (gold) imports have surged in February and March. We will keep a watch. I think that we do not have to be alarmist and see whatever action is required at an appropriate time,” Commerce Secretary Rajeev Kher told reporters here.

He was speaking on the sidelines of the 49th convocation of the Indian Institute of Foreign Trade.

Relaxation in gold import norms by the Reserve Bank led to a spurt in imports of the precious metal in the recent months.

On November 28 last year, the RBI had scrapped the controversial 80:20 scheme.

Under the programme, which was put in place in August 2013 to put a tight leash on gold inflows, at least 20 per cent of the imported gold had to be exported before bringing in new lots.

Increasing gold import was one of the reasons for the widening trade deficit in March, which stood at $11.79 billion, a 4-month high.

India is the largest importer of gold, which mainly caters to the demand of the jewellery industry.

On declining merchandise exports, Mr. Kher said it was ‘indeed a cause of concern.’

“But we are aware of the reasons. We are aware that globally everything is slowing down, and, therefore, opportunities for Indian exports to that extend are limited. We need to find new areas, new markets, produce better quality products and more value added product. That is the way we can diversify,” he added.

Source:- thehindu.com