Gold smuggling will rise if import curbs continue: Raghuram Rajan

Gold smuggling into India will pick up if the import curbs continue for too long, the Reserve Bank of India chief Raghuram Rajan said in an interview to a television channel.

India will keep a tight leash on gold imports despite a recent improvement in its trade deficit and lobbying by a bullion industry struggling with high premiums and a supply crunch.

Earlier this year, the Indian government and the central bank issued a series of curbs on imports of gold - the second-most expensive item on India's import bill - hoping to ease the pressure on the currency. Measures included hiking import duties on gold to a record 10 per cent.

Copyright: Thomson Reuters 2013