Gold Imports by India May Slump as Purchases Tied to Exports

Gold imports by India, the world’s biggest user last year, may plunge after the central bank linked inbound shipments to exports to cut a record current-account deficit and stem a decline in the currency.

Overseas purchases may tumble 63 percent to 175 metric tons in the six months through December from a year earlier, said Bachhraj Bamalwa, a director at the All India Gems & Jewellery Trade Federation. The Reserve Bank of India announced new rules late yesterday, making it mandatory for importers to set aside 20 percent for re-exports as jewelry.