Changes in the policies related to the import of gold are being considered by the central bank and the government, according to media reports. The immediate trigger for the move is the surge in gold imports over the last quarter which has once again impacted the Current Account Deficit. 

Last month, India's gold imports zoomed almost 400% compared to a year ago and touched $ 4.18 billion. Since the country’s exports during the month also dropped by 5% to $ 26.1 billion, there was a spike in the overall trade deficit as well.

Though trade data indicates that the deficit for the first seven months of the year at $ 83.75 billion is marginally below the level for last year when it stood at $ 87.31 billion, the Dy Governor of the Reserve Bank of India asked the government to review the country's gold import policy.

There is as yet no clear indication about whether the government proposes a further hike in import duties or some other procedural measures to curb rising imports, but unnamed government officials have been quoted as confirming that the some steps were imminent.