NewKerala.com

No Immediate Curbs on Forex Outflows or Gold Imports: Govt

The Indian government has clarified there are no immediate plans to restrict international card usage or raise import duties on gold and silver. This follows PM Narendra Modi's call for reduced dependence on imported commodities like fuel and gold. The clarification aims to ease speculation about potential foreign exchange outflow curbs. Additionally, a US trade team is expected to visit next month to discuss a bilateral trade agreement.

Key Points: Govt: No Curbs on Forex, Gold Imports | India

  • No immediate curbs on international card use
  • No plans to hike gold import duties
  • PM Modi stresses reducing imported fuel and gold purchases
  • US trade team likely to visit next month
2 min read

Amid forex concerns, Govt says no immediate curbs on overseas spending or gold import

Government clarifies no immediate restrictions on international card use or gold import duties amid forex concerns, following PM Modi's call for economic self-reliance.

"At present, there are no import restrictions on cards - Commerce Ministry sources"

New Delhi, May 11

Amid concerns over India's rising import bill and pressure on foreign exchange reserves, government sources on Monday clarified that there are currently no plans to impose restrictions on the use of international cards or raise import duties on precious metals, even as Prime Minister Narendra Modi on Sunday, stressed the need to reduce dependence on imported commodities such as fuels, gold jewellery and overseas spending.

Commerce Ministry sources said, "At present, there are no import restrictions on cards," dismissing speculation around possible curbs on international transactions to contain foreign exchange outflows.

The sources further stated that there are "no plans to hike tariff on gold and silver" at this stage, signalling that the government is not considering immediate fiscal measures on precious metal imports despite concerns over rising purchases.

The clarification comes a day after Prime Minister Modi on Sunday, in his remarks on economic self-reliance and responsible consumption, emphasised the need to reduce expenditure on imported fuel, unnecessary international travel and gold purchases to help strengthen the country's economic position and conserve foreign exchange reserves.

India imports over 85 per cent of its energy needs and it remains one of the world's largest importers of gold, with imports of the precious metal often contributing significantly to the country's trade deficit.

International travel and overseas spending have also seen a sharp recovery after the pandemic years, adding to foreign exchange outflows.

India's import bill has remained elevated due to volatile crude oil prices and sustained domestic demand for gold and electronic goods.

Economic survey of the finance ministry has also flagged the need for calibrated measures to manage the current account deficit while ensuring that consumption demand is not adversely impacted.

Commerce Ministry sources also indicated that engagement with the United States on the proposed bilateral trade agreement is expected to gather momentum in the coming weeks.

"US trade team is likely to come next month. Date is yet to be decided," the sources said.

Sources said the talks are likely to focus on resolving outstanding market access concerns, tariff-related matters and regulatory issues as both sides continue efforts to deepen bilateral economic engagement.

India and the United States have been engaged in discussions aimed at expanding trade cooperation and addressing long-pending disputes across sectors including digital trade, agriculture, manufacturing and technology.

- ANI

Share this article:

Reader Comments

N
Nisha Z
Finally some clarity! There was so much confusion after PM Modi's speech - everyone thought they'll ban gold imports or stop international card usage. But honestly, we keep on talking about reducing gold imports every year, yet nothing changes. Unless gold prices come down or alternative investment options become attractive, people will continue buying gold.
R
Ravi K
PM Modi is right to focus on reducing imports, especially oil and gold. But we need to look at WHY imports are high - domestic manufacturing hasn't improved much despite all the Make in India talk. Instead of curbing spending, why not boost production? 🤔
S
Sneha F
I think it's smart not to impose immediate restrictions. Gold is deeply tied to our culture - weddings, festivals, savings. Any sudden tax hike would create panic. Let's hope the US trade deal works out well and helps reduce our trade deficit through exports instead of just controlling imports.
A
Arjun K
This is a responsible move. If the government had banned international card usage overnight, imagine the chaos for families with kids studying abroad or people with medical emergencies. But I hope they also look at the other side - why are we importing so much? Our domestic industries need real support, not just speeches.
K
Kavya N
I appreciate the government giving clarity so quickly. But let's be honest - every year we have this gold import issue. The real problem is we don't produce enough value-added products for export. Look at how China or Vietnam grew - through manufacturing. We need to focus on that rather than always curbing consumption.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50