Gold Imports by India May Surge While Jaitley Retains Tax

Gold imports by India, the world’s biggest consumer, are poised to surge after Finance Minister Arun Jaitley confounded industry expectations for a reduction in tax.

Overseas purchases may jump to 100 metric tons in March from about 25 tons in February as jewelers and traders, who delayed purchases in anticipation of the tax cut, replenish stockpiles, Rajesh Mehta, chairman of Rajesh Exports Ltd., said by phone from Bengaluru on Feb. 28. Domestic demand will also increase as retail buyers return to the market, he said.