RBI has expressed concern over the current account deficit due to import of Gold. Reserve Bank has recommended increasing the import duty on gold along with to waive the tax for the people who pledging gold from banks. Significantly India has major stake on gold import in the current account.
Finance minister P Chidambaram has also expressed concern about growing import of gold and huge rise in current account deficit due to this. He said on Wednesday that Government is planning to control its import.
Current account has reached 5.4% on GDP record and gold import was $20.2 billion. This amount is less by 30.3% in compare to last year. Chidambaram has not opened the facts but it is considered that import duty on gold could be increased.