Duty on gold, silver, non-essential imports to go up

Duty on import of gold, silver and non-essential goods is set to go up even as the government announced a slew of measures, including easier overseas borrowing norms, to fetch an additional $11 billion this fiscal to arrest rupee fall and check the burgeoning capital account deficit.

The interest on foreign currency non-resident accounts has been liberalised to attract more deposits.

The customs notifications on the import of these items will be placed in Parliament on Tuesday, Finance Minister P Chidambaram told a press conference hours after he made a statement in both the Houses on measures to contain the CAD at $79 billion or 3.7 per cent of the gross

domestic product.

He refused to disclose the actual figures on import duty saying Parliament was in session and he would not make any statement outside.

"CAD is a problem (but) we have solutions. We will implement the solution (and) there is no room for panic", the Minister told reporters, adding these initiatives would help in reducing foreign exchange volatility and contain the Current Account Deficit.

"CAD is as much a red line as fiscal deficit. If we can contain CAD, sentiment about currency market and rupee will significantly improve", he said.

As regards the measures to increase capital flows, Chidambaram said that permission would be given to IRFC, PFC and IIFCL to collectively raise $4 billion through quasi-sovereign bonds for the infrastructure sector.