New Delhi: The government on Wednesday said rising amount of gold imports is no cause for an "alarm" and action will be taken at an appropriate time.
Gold imports in March nearly doubled to USD 4.98 billion, while in January and February, it rose to USD 1.55 billion and USD 1.98 billion, respectively.
"The (gold) imports have surged in February and March. We will keep a watch. I think that we do not have to be alarmist and see whatever action is required at an appropriate time," Commerce Secretary Rajeev Kher told reporters here.
He was speaking on the sidelines of the 49th convocation of the Indian Institute of Foreign Trade.
Relaxation in gold import norms by the Reserve Bank led to a spurt in imports of the precious metal in the recent months.
On November 28 last year, the RBI had scrapped the controversial 80:20 scheme.
Under the programme, which was put in place in August 2013 to put a tight leash on gold inflows, at least 20 percent of the imported gold had to be exported before bringing in new lots.
Increasing gold import was one of the reasons for the widening trade deficit in March, which stood at USD 11.79 billion, a 4-month high.
India is the largest importer of gold, which mainly caters to the demand of the jewellery industry.
On declining merchandise exports, Kher said it is "indeed a cause of concern".
"But we are aware of the reasons. We are aware that globally everything is slowing down and therefore opportunities for Indian exports to that extend are limited.
"We need to find new areas, new markets, produce better quality products and more value added product. That is the way we can diversify," he added.
India's exports dipped deeper into the negative zone, recording a decline of 21 percent, in March.
This was the biggest fall in last six years, pulling down the total shipment for 2014-15 to USD 310.5 billion, missing the target of USD 340 billion.
Exports have been on a downward spiral since December last year. The previous biggest decline in export was in July 2009, when it dipped by 28.4 percent.
Asked about any plans of hiking steel duty in near future, Kher said, "As far as my department is concerned we are not looking at any hike (in duty) on any product."
About the services sector, he said, "We should be in the position to make our services more competitive and if there are constraints which are holding back our competitiveness then we should undo them."
He added: "We are in any case a country which has potential to offer good services therefore we must identify and try all those sectors and work towards helping them to consolidate their strength and seek markets outside."
About India's plans to promote services sector, he said, "Well, we are basically looking at creating a strong awareness among the stakeholders community globally that services is a very strong area of international trade and India has a strong position in services."
When asked why bilateral investment treaties are not getting Cabinet nod and if that is proving a hindrance in terms of negotiating investment agreements with other countries, he said, "No, I don't think so. We are negotiating investment chapters in FTA that we are negotiating."
NITI Aayog Vice Chairman Arvind Panagariya, who was also present on the occasion, said that the Indian economy will grow at 8-10 per cent for next 10-15 years.
Panagariya was of the view that there is a need to promote free trade as it would help exploiting the potential of Indian economy.
He said there is a need to focus on producing those goods for which resources like labour and raw material are available in the country for achieving competitiveness in international market.
