New Delhi: The Reserve Bank of India's (RBI) move to ease gold import norms is likely to help bring down the price of the precious metal in the domestic market, FICCI on Fiday said.
"The move will help in reduction of gold prices in the domestic market and will also help in reviving the growth of the industry slowly," FICCI President Sidharth Birla said.
"Moreover now, with the stable and reduced CAD position, we expect that the new government will bring in further reforms in gold import policy to stimulate the growth of this high export earner sector of India," he added.
The RBI had earlier eased gold import norms by allowing select trading houses, in addition to already permitted banks, to procure the precious metal to boost exports.
In July last year, RBI had imposed severe restrictions on gold imports to check burgeoning current account deficit and depreciating rupee.
The central bank had tied imports with exports and prescribed a 20:80 formula, which was available to select banks only and other entities were barred from importing the yellow metal.
Under the 20:80 scheme an importer has to ensure that at least one-fifth, or 20 per cent, of every lot of imported gold is exclusively made available for the purpose of exports and the balance for domestic use.
Continuing its losing streak for the fourth straight day, gold prices lost another Rs 300 to trade at fresh 10-month low of Rs 28,250 per ten gram in the national capital on Friday as stockists engaged in reducing positions.
