Restrictions on gold imports to be reviewed by March end: FM

January 27, 2014

Gold_importsNew Delhi, Jan 27: The restrictions on gold imports will be reviewed by March end, Finance Minister P Chidambaram said today.

"I am confident that by the end of this year we will be able to revisit some of the restrictions on gold import but we will do so only when we are absolutely sure that we have a firm grip on the current account deficit," he said while addressing tax officials at the Customs Day here.

To contain the rising gold imports, the government had increased customs duty on the yellow metal three times in 2013. The levy currently stands at 10 per cent.

Besides, the Reserve Bank has also linked imports of the metal to exports amid a widening CAD and depreciation of the rupee.

Gold imports, which touched a high of 162 tonnes in May, fell to 19.3 tonnes in November in the wake of a series of curbs by both the government and the RBI.

The imports in December was a "little higher" than in November, Finance Secretary Sumit Bose told reporters.

Chidambaram said there has been about 1-3 tonnes of gold smuggled into the country every month following the restrictions imposed on shipment last year.

"I know gold smuggling has increased...But the restrictions on gold import were absolutely necessary because it is these restrictions which have brought down gold import which in April and May had crossed 300 tonnes.

"If we had not imposed restrictions, there was no way we could have managed balance of payments or the current account deficit," he said.

With the clamour for a duty cut on gold imports growing, Congress President Sonia Gandhi had last week written to Commerce Ministry in this regard.

Gold imports constitute the second biggest component in the import bill after crude oil. Spurt in gold import had pushed CAD to a record high of USD 88.2 billion or 4.8 per cent of GDP last fiscal.

Chidambaram said the long-term method to control the CAD is not to indulge in policy repression by restraining the import of gold.

"The long-term goal is to increase exports. We have to earn as many dollars as we need through exports to pay for imports. We need to find ways to increase exports," he said.

For the April-December period, exports aggregated USD 230.3 billion and imports USD 340.3 billion, with the trade deficit at USD 110 billion.

In value terms, gold and silver imports in April-December period declined 30.3 per cent to USD 27.3 billion from USD 39.2 billion during the same period a year earlier.

To restrict gold imports, the RBI in August last year had said entities should ensure that at least one-fifth, or 20 per cent, of every lot of import of gold is exclusively made available for the purpose of exports and the balance for domestic use.

Chidambaram said these restrictions were necessary to contain CAD.

"While we have lost some in perhaps tightening the gold smuggling, we have gained tremendously in terms of controlling the current account deficit and being able to manage the balance of payments and bringing about large stability in the currency," he said.

The government expects to bring down the CAD, which is the difference between the inflow and outflow of foreign exchange, to USD 50 billion in current fiscal from USD 88.2 billion in 2012-13.

The CAD in the first half (April-September) of current fiscal narrowed to USD 26.9 billion (3.1 per cent), from USD 37.9 billion (4.5 per cent) in the first half of 2012-13.

Declining gold imports has also contributed to the improvement in CAD, which dropped to 1.2 per cent in second quarter, as against 4.9 per cent in the first quarter.

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News Network
May 21,2020

United Nations, May 21: At least 19 million children in parts of Bangladesh and India are at "imminent risk" from flash flooding and heavy rain as Cyclone Amphan makes landfall and the state of West Bengal is expected to take a direct hit from the powerful storm, the UN's children agency has warned.

The extremely severe cyclonic storm Amphan made a landfall at Digha in West Bengal and Bangladesh on Wednesday, leaving a trail of destruction. At least three persons were killed in India and seven in Bangladesh.

The UNICEF said that at least 19 million children in parts of Bangladesh and India are at “imminent risk from flash flooding, storm surges and heavy rain as Cyclone Amphan makes landfall.”

West Bengal, “home to more than 50 million people, including over 16 million children, is expected to take a direct hit from the powerful storm,” the UN agency said in a statement on Wednesday.

The UNICEF said it is also very concerned that the COVID-19 could deepen the humanitarian consequences of Cyclone Amphan in both the countries. Evacuees who have moved to crowded temporary shelters would be especially vulnerable to the spread of respiratory diseases like COVID-19, as well as other infections.

“We continue to monitor the situation closely,” said UNICEF Regional Director for South Asia Jean Gough.

“The safety of children and their families in the areas that will be impacted is a priority and it is good to see that the authorities have planned their urgent response factoring in the on-going COVID-19 pandemic.”

Across the region, the UNICEF is “working closely with the governments of Bangladesh and India and stands ready to support humanitarian operations to reach children and families affected by Cyclone Amphan.”

Based on the storm’s current trajectory, Cox’s Bazar in Bangladesh – now sheltering over 850,000 Rohingya refugees – is likely to experience high winds and heavy rains which may cause damage to homes and shelters in the refugee camps and Bangladeshi communities. This population is already highly vulnerable and cases of COVID-19 have recently been confirmed in the camps and host communities.

The UNICEF said it is working with the Deputy Commissioner’s Office in Cox’s Bazar, the Office of the Refugee Relief and Repatriation Commissioner, and humanitarian partners to help ensure Bangladeshi and Rohingya children and families remain protected.

These efforts include raising awareness among Rohingya and Bangladeshi communities on cyclone preparedness and prepositioning emergency life-saving water, sanitation, hygiene and medical supplies to meet immediate humanitarian needs.

Meanwhile, UN Secretary-General Antonio Guterres’ spokesperson Stephane Dujarric said at the daily press briefing that UN teams on the ground continue to work with the Government of Bangladesh to prepare and support those in need in the wake of the cyclone.

“Given the current pandemic, this support includes distributing personal protective equipment, disinfectants and other materials to evacuation shelters. To reduce the person-to-person contact during the delivery of aid, e-cash distributions will be used,” he said adding that the UN along with its partners is mobilising more than 1,700 mobile health teams and preparing for emergency food deliveries.

“The Super Cyclone is taking a westerly trajectory towards India, but nearly 8 million people in Bangladesh remain at risk,” he said adding that the Bangladesh government has evacuated more than 2 million people in high-risk areas. 

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Agencies
June 26,2020

New Delhi, Jun 26: Congress president Sonia Gandhi on Friday said the central government cannot shirk its responsibility of securing our borders with China and asked Prime Minister Narendra Modi to take the nation into confidence on the situation in Ladakh.

In a video message put out as part of the Congress party's campaign to honour the Army personnel who sacrificed their lives in Ladakh, she asked why the country's soldiers were martyred when China has not captured any Indian territory, as claimed by the Prime Minister.

"Today when there is a crisis-like situation at the India-China border, the central government cannot shirk its responsibility (of securing them)," she said in a video message as part of 'SpeakUpForOurJawans' campaign.

"The country wants to know if China has not captured our land in Ladakh, as claimed by the Prime Minister, then why were our 20 soldiers martyred," she asked.

She said while the Prime Minister says there is no intrusion into Indian territory, experts after seeing satellite images talk of the presence of Chinese troops in our territory confirming the intrusions.

"When and how will the Modi government take back from China our land in Ladakh? Is our territorial integrity being violated by China in Ladakh? Will the Prime Minister take the nation in confidence on the situation at the border?" Gandhi asked.

She said the government should give full support and strength to the Army, saying "this will be true patriotism".

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News Network
July 26,2020

New Delhi, Jul 26: Nidan Singh Sachdeva, the Afghan Sikh who was kidnapped a month ago and released recently, arrived here earlier in the day and narrated the ordeals that he faced at the hands of abductors and also thanked the Indian government for bringing him back to his 'motherland'.

Facing threats from Pakistan-backed Taliban, eleven members of Sikh community from Afghanistan, who were granted short-term visas by Indian Embassy in Kabul, including Sachdeva, who was abducted from a gurudwara in Paktia province last month, touched down in New Delhi on Sunday afternoon.

Speaking to news agency on his return, an emotional Sachdeva, said, "I don't know what to call Hindustan -- whether it is my mother or my father -- Hindustan is Hindustan."

"I was abducted from the gurudwara and 20 hours later, I was covered with blood. I was tied to a tree as well. They used to beat me and ask me to convert into a Muslim. I repeatedly told them that why should I convert, I have my own religion," he said while describing
Nidan Singh thanked Government of India for bringing him here.

"I am more than thankful to the Indian government for bringing us here to our motherland. I have no words to describe my feelings here. I arrived here after much struggle. The atmosphere of fear prevails there.

Gurudwara is where we can be safe but a step outside the Gurdwara is fearful," he said.
"They used to beat me every day and every night," he said further and added, "It is because of sheer happiness, I am speechless. I am very grateful to them."

Ministry of External Affairs recently announced that India has decided to facilitate the return of Afghan Hindu and Sikh community members facing security threats in Afghanistan to India.
The decision comes four months after a terror attack at a gurdwara in Kabul's Shor Bazaar killed at least 25 members of the community.

India has condemned the "targeting and persecution" of minority community members by terrorists in Afghanistan at the behest of their external supporters remains a matter of grave concern.

Leaders of the Afghan Sikh community have appealed to the Indian government to accommodate the Sikhs and Hindus from Afghanistan and grant them legal entry with long term residency multiple entry visas.

Once a community of nearly 250,000 people, the Sikh and Hindu community in Afghanistan has endured years of discrimination and violence from extremists, and the community is now estimated to comprise fewer than 100 families across the country.

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