The Government of India is considering banning the export of 24 Carat Gold. In India, mostly gold coins and bars were made using this proposition which is 99.9% pure and commands a greater value. Across the World, only China has 24 Carat and no other country has this.
The decision is mulled in order to prevent misuse of bank funds meant for exports,as few companies export this to the gulf countries to be re-imported again. This method of export and re-import of Gold is pegged at 100 tonnes which is significantly higher than the export of ornaments and precious stones and hence the stake on this is very high considering it is the purest form of gold being transacted paving way to lot of misuse of funds.
A gold survey by GFMS Thomson Reuters says: “In 2016 the import of duty-free gold, which was destined for manufacturing jewellery and medallions for exporting, declined by 15 per cent to 167.3 tonnes from 196.2 tonnes in 2015. Of this we estimate 125 tonnes were used for round tripping and 38 tonnes for exports during 2016.”
The Gems and Jewellery Export Promotion Council had drawn the attention of the finance ministry asking it to find out how much value addition was happening in such exports as they are of the opinion that these exports appear inflated. A decision on this is likely to be taken soon to prevent the misuse and place a possible check to curb any deficiencies.