update

       amid continuing geo-political tensions in the Gulf and the other Middle Eastern countries, Finance Ministry has made it clear that it cannot lower its guard on the external front and ease gold import curbs as developments in Iraq and other countries can have adverse implications on the country's Current Account Deficit (CAD) situation. Revenue Secretary Shaktikanta Das has stated that though CAD problem has been contained, India needs to be very cautious as global uncertainties in gulf countries can push up oil prices inflating the import bill, adding to pressure on the CAD. .

      The current account deficit (CAD) narrowed to $32.4 billion (1.7% of GDP) in FY14 as compared to $87.8 billion (4.7% of GDP) in FY13 mainly driven by the lower gold imports. Gold and silver imports fell by 40.02% to $33.46 billion in FY14 due to the stern Government’s norms like high customs duty of 10% and existing 80/20 rule under which 20% of all gold imports by importers has to be re-exported.

      Asian equity indices were trading mixed; Hang Seng up by 0.42% to 24,635.56, Shanghai Composite up by 1.19% to 2,211.28, Jakarta Stock Price Index up by 0.04% to 5,090.72 and Taiwan Weighted up by 0.69% to 9,330.19. While, Straits Times Index down by 0.64% to 3,323.77 and Nikkei 225 down by 0.27% to 15,480.88