Gold import spurt a serious concern: Rangarajan
Gold demand is likely to fall as easing of general inflation rate will make investment in financial products more attractive than the yellow metal, Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan said today.
Also, the steps being taken to curb gold demand are expected to bring down the current account deficit (CAD) by 0.4-0.5% of GDP in the current fiscal, he said.
"Some action has been taken by RBI in terms of controlling gold demand. To supplement these actions, as inflation comes down and returns on financial products become more attractive, it will be possible to contain gold demand," Rangarajan said on the sidelines of gold summit organised by Assocham. Read More