India looks at gold import curbs, diesel deregulation to pare deficit

02 Jan 2013

1

The government is considering curbs on import of gold and deregulation of the price of diesel as it strives to cut the country's current account deficit, which has widened to a record 5.4 per cent of GDP in the September quarter.

Finance minister P ChidambaramWith both current account deficit and the government's own fiscal deficit touching record highs, finance minister P Chidambaram has indicated raising the duty on gold and deregulation of the price of diesel with a view to curb consumption.

Gold imports constitute a substantial chunk of the country's import basket and is a huge drain on the current account deficit while the high international prices of crude oil has ensured a hefty oil import bill.

Addressing the media in New Delhi, Chidambaram said the government would, however, take a decision only after looking into the various dimensions of deregulating diesel prices.

"The government has to take into account several dimensions of issue before a decision can be taken," he said, adding that there are two views to the diesel price issue -  while some argue for deregulation, the others say that it would fuel inflation.

"On one column (of a newspaper) you will say, deregulate diesel price and on another column you will say inflation (will rise). These are not unidimensional issues, you cannot approach a issue from one dimension," he said.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more