A ‘phenomenal’ rise in India’s gold imports is a concern and the government will watch the impact from a recent easing in gold import rules, Trade Secretary Rajeev Kher said on Tuesday.
Gold imports jumped 34 percent in November to $5.61 billion, sending India’s trade deficit to a 18 month high, data showed late on Monday.
Despite the surge in gold imports, India late last month scrapped a rule mandating traders to export 20 percent of all gold imported into the country.
Kher, at an event in Mumbai, also said the rupee at 60-62 per dollar was good for exporters, although he added he would be a “little more concerned” if the rupee falls further.
The rupee earlier dropped to a 13 month low of 63.54 to the dollar on worries about the turmoil in global markets.