Recently import duty on gold has been raised and bank finance against pledge of gold has been restricted. The efficacy of these measures, however, is yet to be tested. We have also introduced inflation indexed bonds which should help contain gold demand to the extent these bonds are used as an investment hedge against inflation.
Notwithstanding these measures for a fast growing economy like ours, import demand is bound to be high. Hence, we have to step up exports to narrow the trade gap. But in a phase of sluggish global economy, it is difficult to push up exports. Nevertheless, initiatives have been taken to diversify trade towards emerging markets.