Around 200 Tonnes Of Gold Will Enter India Via Grey Route In 2014: WGC

NEW DELHI: Out of the total gold import demand in India in 2014, more than 200 tonnes -- almost 20 percent -- would be served by the grey market, a top official of the World Gold Council said.

"The total demand in 2014 is estimated to be between 850-950 tonnes, out of which upwards of 200 tonnes is likely to be served by the grey market," said Somasundaram P.R., managing director (India), World Gold Council.

He was speaking to reporters on the sidelines of the '7th International Gold Summit' organised by the Associated Chambers of Commerce and Industry of India (Assocham).

Gold import through the grey route -- a euphemism for smuggling -- increased since the central government hiked customs duty on the import to 10 percent.

He said: "In India, 22,000 tonnes of gold valued at over $1 trillion is held privately (including households and temples). A range of social, cultural and economic factors ensure that gold remains a preferred asset class across households regardless of supply restrictions."

Regarding the curbs put on gold import, Somasundaram said: "It is our hope that the short-term curbs on gold, understandable at the time they were introduced but which have led to an increase in smuggling, will be reviewed and reversed soon."

Also Read:
5 Indian Firms In Forbes List Of Most Innovative Companies