If we have to achieve growth rate of 9 per cent and above, the inflation has to be below 5 per cent. The higher inflation also puts pressure on our exchange rate and further aggravates the  4  BIS central bankers’ speeches  problem of Current Account Deficit. Added to that is the problem of import of gold.
India being a poor country and in need for foreign exchange, the import of gold of more than $ billion will not help in controlling the CAD and bringing down the inflation.