Marking tenth consecutive month of decline, Indian exports of gold jewellery dropped in January, with outbound shipments declining by 23 per cent to Rs 2,993 crore. Cumulatively, gold jewellery exports from April to January fell 44.42 per cent to Rs 33,178 crore from Rs 59,693 crore in the corresponding period of the previous fiscal. However, in the first two months of the current fiscal, gold imports had crossed 300 tonne. Nevertheless, exports are expected to further fall due to no sign of any government incentives to revive the sagging shipments.
India has imposed a lot of restriction to bring down the imports of the yellow metal, which is the second biggest import item by value after oil. These measures include a rule that 20 percent of all gold shipped to be re-exported as jewellery, which makes it difficult for domestic jewellers and even exporters to get supplies despite high premiums. Besides the 80/20 import rule, the government has raised the customs duty thrice to 10 per cent in 2013.
However, in a development which has raised the hopes of improvement in imports of gold, finance ministry has said that India will review the curbs by the end of March, which coincides with the end of India's fiscal year.