gold and silver
For the last few days, there was a strong rumor in the market that the government is going to increase the import duty on gold and silver. These speculations were further strengthened after a statement by Prime Minister Narendra Modi on Sunday. The PM had stressed the need to reduce expenditure on imported fuel, gold jewelery and abroad to conserve foreign exchange reserves. After this statement, the question in everyone's mind was whether foreign travel will become expensive now or buying gold will be heavy on the pocket. But now Commerce Ministry sources have made it clear that no such step is being taken at present.
What is the government's plan on gold and silver prices?
Buying gold and silver during festive and wedding seasons is an important part of every Indian family. In such a situation, the news of increase in import duty directly impacts the budget of the common man. Government sources have made it clear that at present there is no plan to increase the tariff i.e. import duty on gold and silver. This means that at present no such financial measure is being taken by the government which would cause the prices of these precious metals to suddenly skyrocket. Despite the country's rising import bill and pressure on foreign exchange reserves, the government does not want to affect the demand of ordinary consumers right now.
What is the update on the use of international cards?
Since the pandemic, the inclination of Indians to go abroad and spend there has increased rapidly. Foreign currency goes out of the country due to transactions done through international cards. There was also discussion in the market that the government may impose some restrictions on the use of international cards to stop the outflow of foreign currency. However, sources have rejected all these speculations. According to the Commerce Ministry, at present no import restriction of any kind has been imposed on the cards. That means, if you are planning to travel abroad or shop from international websites, then there is no need to worry right now.
Why was the discussion about restrictions suddenly raised?
In fact, India imports more than 85 percent of its energy needs. Additionally, we are one of the largest importers of gold in the world. India's import bill remains at a very high level due to unstable prices of crude oil in the international market and continuous demand for gold and electronic goods at domestic level. The country's trade deficit increases as imports increase. It was also mentioned in the Economic Survey of the Finance Ministry that there is a need to take balanced steps to manage the current account deficit. This was the reason why the PM had talked about self-reliance and responsible consumption, which the market had seen as possible restrictions.
What is the update on trade talks with America?
Amidst these domestic economic concerns, some important activities are also taking place on the global trade front. Sources have indicated that talks between India and America regarding the proposed bilateral trade agreement may intensify in the coming weeks. It is expected that the American trade team will visit India next month, although its date has not been decided yet. India and America have been trying for a long time to increase trade cooperation in important sectors like digital trade, agriculture, manufacturing and technology and end old disputes.
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