New Delhi:
Reducing the import duty on gold is the best way to curb smuggling of the yellow metal, Economic Advisory Council to the Prime Minister (EAC-PM) Chairman Bibek Debroy said on Thursday. Addressing a virtual event organised by the Centre for Civil Society, Debroy also said the share of manufacturing in India’s GDP has been flat for the last 40 years.
”So far as smuggling part is concerned, as with several other things, I think the best antidote to smuggling is to reduce the import duties. I think import duty (on gold) should be reduced,” he said. Debroy also noted that smuggling happens due to other factors as well, including misalignment in exchange rates.
”Sometimes it can be linked to drug trafficking, but substantially it happens because of high import duties,” he emphasised. Debroy further said the gold stock figures in India are not very reliable.
”Most of the gold in India is in the form of gold jewellery, it is not in form of gold biscuits or coins, which means there is a serious valuation issue. ”The gold that I possess in the form of jewellery may not be worth as much I think it is,” he added.
