Rewind to the year 2013 — the last year of the UPA-II government. With the economy in shambles and a worsening fiscal deficit, the government announced several measures to curb gold imports. That July, the RBI banned gold leasing. Banks and nominated agencies were free to import gold, but they could pass it on to jewellers only against full payment (and not on lease, like earlier). That escalated the jewellers’ working capital requirements. A month later, in August, the government delivered another blow. It imposed the 80:20 import rule — up to 80% of gold imported could be sold in the country on the condition that 20% was exported.
Feature
The Alchemist
Titan’s gold-exchange programme has helped it manage its working capital expenses, and accelerate its sales
Editor's Pick
Most Popular
Summer wine and salad
Kishore Singh - January 19, 2015
A double topping for growth
Meghna Maiti - January 15, 2015
The million-dollar question: Is investing a game of luck or skill?
Shankar Sharma - May 04, 2021
Scriptures for success
Kripa Mahalingam - January 27, 2015
Every crisis is an opportunity, if you are on the right side of equities
Samir Arora - May 04, 2021