RBI chief: No doubt gold smuggling will rise if import curbs continue
Gold smuggling into India will pick up if the import curbs continue for too long, the Reserve Bank of India chief Raghuram Rajan said in an interview to television channel CNBC Awaaz on Monday.
India will keep a tight leash on gold imports despite a recent improvement in its trade deficit and lobbying by a bullion industry struggling with high premiums and a supply crunch.
Earlier this year, the Indian government and the central bank issued a series of curbs on imports of gold – the second-most expensive item on India’s import bill – hoping to ease the pressure on the currency. Measures included hiking import duties on gold to a record 10 percent.