Even though the Indian Government plans to reduce the gold import tax prior to the upcoming elections it is unlikely that it will reduced back the original 4% immediately. Instead, it is widely expected the reduction from 10% is likely to happen in a number of tranches.

According to an official source, The government is looking into the issue and there will be some reduction in import duty as the current account deficit has also come down to a comfortable level but it may not be brought back to the original level immediately,”