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NEW DELHI, Aug 2: Realising the constraint of gold availability in promoting jewellery exports, the government is now liberalising regulations for its easy and ensured supply through nominated agencies, Commerce Secretary P Prabhu said here today.
“Earlier bonded warehouse requirements and the onus of the fulfilment of export obligation had hindered the initiative of the nominated agencies especially the banks in adopting schemes,” he said while inaugurating a seminar on Gold banking,’ organised by World Gold Council.
Stating that the revenue department had revised the guidelines on the Commerce Ministry’s request, wherein the export obligation would squarely rest with the exporters, he said the nominated agencies will decide their own terms and conditions on issuing gold to exporters and other consumers.
Even the Tarapore committe on the capital account convertibility had said that liberalisation of rules and regulations concerning gold has an inseparable link with the successful move towards capital account convertibility, he recalled.
The government would like to see gold jewellery exports develop in a manner which will help india capture substantial chunk of the world market, he said.The commerce secretary said the potential of gold jewellery exports is high considering the reservoir of talented craftsmen in the country.
The deputy governer of RBI Y Venugopal Reddy said liberalising import will result in additional revenue of Rs 250 crore to the government and import of gold will have a positive impact on the trade balance. Reddy said banks should come forward to lend against gold and jewellery to further boost the jewellery business and asked them to lend against gold up rs two lakh.
The role of the government is very important in legalising gold trade and liberalisation will not generate black money in the economy through gold, he said.
