The World Gold Council (WGC) has informed that after the 1st quarter of 2017 (January to March), The import of gold will come down in India following the implementation new tax policies and regulations.
In the present time, 253 tons of gold have been imported in the 1st quarter of the calendar year 2017. However, GST, a new uniform taxation system throughout the country, is set to be introduced from 1st July. Because of this, most traders and experts opine that the import of gold in the balance 3 quarters of the calendar year 2017 will be a total of 271 tons combining all 3 quarters. This works out the gold import per quarter would be only 90 tons.
India holds the 2nd place in gold imports after China. Last year (2016), China imported 674 tons of gold. They observe, when import goes down, the demand goes up.
India’s annual gold import requirement is about 650 to 700 tons. However, it might be difficult to confirm whether that much gold could be imported. Further, there are good prospects of a considerable increase in gold price as well.