The metal’s use is deeply rooted in the nation’s culture and tradition, and import curbs may not significantly dent demand, Prem Hinduja, chief executive officer of jeweler Tribhovandas Bhimji Zaveri Ltd, said in an interview on June 14.
The All India Gems & Jewellery Trade Federation, which represents about 300,000 businesses, said on June 24 it will ask members to suspend sales of coins and bars to retail investors.
“We are of the view that if the government is worried, we as responsible citizens must help the government,” Bachhraj Bamalwa, a director at the Federation, said in a telephone interview on Wednesday last week.
“We want to tell the government that increasing import duties, putting curbs on imports is not the solution,” he added.
The RBI on June 17 left its benchmark rate unchanged for the first time this year, saying it would need evidence of a “durable” cooling of inflation and a stabilizing of flows that hurt India’s balance of payments.