New Delhi: Curbs on gold import are likely to remain in place with Finance Minister Arun Jaitley today saying the government is inclined to continue with this measure along with other steps taken by the previous UPA regime for controlling the widening CAD as they have worked.
“Each step is being continued…efforts are being made to continue each of these steps,” Jaitley said while referring to measures taken by the UPA government last year to contain Current Account Deficit (CAD) that touched a record high of 4.7 of GDP or $88.2 billion in 2012-13.
Both the government as well as the RBI took a series of steps to curb imports of gold and other non-essential items in addition to increase foreign exchange inflows.
The real crisis on CAD front started in May 2013 when the US Federal Reserve announced its intent to taper its asset purchases or roll back quantitative easing.
At that stage, Jaitley said the Finance Ministry started taking measures, including “harsh” steps on gold imports to contain CAD.