GST uncertainty clouds gold demand and import

The import bill at end-February was $23.3 billion, for 558 tonnes of import

Rajesh Bhayani  |  Mumbai 

The bill for gold import fell again in 2016-17. Whether this would continue or not would depend on multiple factors. Demand is good, showed the March quarter. Whether adverse weather would spoil the rural demand story and how the coming goods and services tax (GST) would be implemented will decide the trend. Policy change is also possible from the government — there is talk of Aadhaar-based Know Your Customer checks being extended for jewellery buying.  The import bill at end-February, for the first 11 months of 2016-17, was $23.3 billion, for 558 tonnes of import. ...

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GST uncertainty clouds gold demand and import

The import bill at end-February was $23.3 billion, for 558 tonnes of import

Slide in gold import bill continues in FY 17 also but looking at the trend seen in March quarter it seems that slide will be arrested as demand continues to be good but projections of El Nino spoiling rural demand story and uncertainties over how Goods and Service Tax will be implemented will decide the trend for the gold. New gold policy in pipeline including talks of Adhar based KYC being extended for jewellery buying is another factor that could decide the trend for future gold demand. Import bill till February this financial year was $23.3 bn and 558 tons gold was imported. However good import trend has continued in March also and import is estimated around 80-85 tons which means estimated import bill for FY 16-17 around $26.8 bn (import estimate 640 tons for whole FY17). However the demand trend is expected to continue ahead of Akshaya Tritiya, an auspicious occasion when gold sales on a single day is quite high and falling on 28 April. Sudheesh Nambiath, Lead Analyst - Precious . The bill for gold import fell again in 2016-17. Whether this would continue or not would depend on multiple factors. Demand is good, showed the March quarter. Whether adverse weather would spoil the rural demand story and how the coming goods and services tax (GST) would be implemented will decide the trend. Policy change is also possible from the government — there is talk of Aadhaar-based Know Your Customer checks being extended for jewellery buying.  The import bill at end-February, for the first 11 months of 2016-17, was $23.3 billion, for 558 tonnes of import. ... image
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