Business Line : Industry & Economy News : High gold imports hurting balance of payments: Gokarn - 0 views
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Katie Edwards on 30 Nov 12A lot of movement in the reserve assets component of the financial account in India is causing stress for the balance fo payments. Demand for gold is increasing, and because of great returns on investment and the affinity for gold in India, demand is increasing. The determinants of demand are highly responsible for maintaining this instability in current account deficit and "stress on the system" for the Reserve Bank of India.