Business News | Amid Forex Concerns, Govt Says No Immediate Curbs on Overseas Spending or Gold Import
Get latest articles and stories on Business at LatestLY. Amid concerns over India's rising import bill and pressure on foreign exchange reserves, government sources on Monday clarified that there are currently no plans to impose restrictions on the use of international cards or raise import duties on precious metals, even as Prime Minister Narendra Modi on Sunday, stressed the need to reduce dependence on imported commodities such as fuels, gold jewellery and overseas spending.
New Delhi [India], May 11 (ANI): Amid concerns over India's rising import bill and pressure on foreign exchange reserves, government sources on Monday clarified that there are currently no plans to impose restrictions on the use of international cards or raise import duties on precious metals, even as Prime Minister Narendra Modi on Sunday, stressed the need to reduce dependence on imported commodities such as fuels, gold jewellery and overseas spending.
Commerce Ministry sources said, "At present, there are no import restrictions on cards," dismissing speculation around possible curbs on international transactions to contain foreign exchange outflows.
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The sources further stated that there are "no plans to hike tariff on gold and silver" at this stage, signalling that the government is not considering immediate fiscal measures on precious metal imports despite concerns over rising purchases.
The clarification comes a day after Prime Minister Modi on Sunday, in his remarks on economic self-reliance and responsible consumption, emphasised the need to reduce expenditure on imported fuel, unnecessary international travel and gold purchases to help strengthen the country's economic position and conserve foreign exchange reserves.
India imports over 85 per cent of its energy needs and it remains one of the world's largest importers of gold, with imports of the precious metal often contributing significantly to the country's trade deficit.
International travel and overseas spending have also seen a sharp recovery after the pandemic years, adding to foreign exchange outflows.
India's import bill has remained elevated due to volatile crude oil prices and sustained domestic demand for gold and electronic goods.
Economic survey of the finance ministry has also flagged the need for calibrated measures to manage the current account deficit while ensuring that consumption demand is not adversely impacted.
Commerce Ministry sources also indicated that engagement with the United States on the proposed bilateral trade agreement is expected to gather momentum in the coming weeks.
"US trade team is likely to come next month. Date is yet to be decided," the sources said.
Sources said the talks are likely to focus on resolving outstanding market access concerns, tariff-related matters and regulatory issues as both sides continue efforts to deepen bilateral economic engagement.
India and the United States have been engaged in discussions aimed at expanding trade cooperation and addressing long-pending disputes across sectors including digital trade, agriculture, manufacturing and technology. (ANI)
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