Those who live in India and purchase precious metals will soon be able to import gold once again, a source from the nation’s trade ministry recently told Reuters.
The individual made this statement after India’s government has taken several steps in an effort to restrict the trade of the precious metal. The Asian nation, which is one of the world’s largest consumers of gold, has been suffering from a trade deficit that is too high as many of those who purchase precious metals have been importing the commodity.
India has been encountering challenges recently as the rupee fell to its lowest value in history in August, and the nation’s trade deficit has surged to record high levels both this year and last, according to the media outlet. Now, people in India who purchase precious metals will once again be able to import gold since the rules surrounding such activities have been ironed out by financial institutions and the nation’s government.
The source who spoke with the news source stated that as a result of a rule that was created earlier this year, the nation’s market participants will need to use a minimum of 20 percent of gold imports as exports.