Govt. making gold costly to help mutual fund : CAIT

In order to divert savings of innocent Indians towards risky investments like mutual funds and capital market, Govt. of India is trying to discourage investments in gold and silver by increasing import duty on these metals said Mr. B. C. Bhartia, National President of the Confederation of All India Traders (CAIT).  He was reacting on recent decision of Central Govt. to increase import duty to 8% from existing 6%.  This may also encourage import of gold through illegal means-said Mr. Bhartia.

Smt. Seema Sethi National President of  CAIT Women Entrepreneurs Organisation (CWEO), woman wing of CAIT, said that since ages gold has been held as safest  instrument of security in case of any eventuality in family. She said that prices of these precious metals are going down worldwide.  It is unfortunate that Indian govt. is working against the culture and sentiments of Indian women.  She said that if need arises the women wing will not hesitate in launching a massive awareness campaign against such decision of the govt.

Mr.B.C. Bhartia and Mr.Praveen Khandelwal, CAIT Secretary General, in a joint statement said that under disguise of current account deficit, the Central govt. is killing the Gems and Jewellery trade of our country.  The current account deficit is mainly on account of Central Govt’s wrong foreign policy and commerce policy which allows liberal imports of foreign goods in our country.  Current account deficit can be controlled only when govt. makes policies to promote exports from our country.  Both the leaders said that the UPA govt. is total failure on the economic front and is bringing Indian economy to one of its worst situation.

Mr.Bhartia and Mr. Khandelwal further said that it is unjustified to ask importers to deposit 100% amount with a bank before opening letter of credit for importing gold and silver.

Mr.Bhartia said that it was because of saving habits of Indian people that Indian economy could stand against the world economic recession.  If the govt. will try to change the Indian mentality of savings, it may be possible that the hard earned money saved by innocent Indians are drained away by way of losses in mutual funds and risky capital market.

The CAIT has appealed to the govt. to make policy for benefit of Indian citizens based on Indian culture.  Govt. should not bow against the pressure of foreign govt. and multinational companies-it said.