Is India going back to bullion?

India's trade deficit narrowed in January, thanks to the country's strict import controls on gold imports. But analysts are warning that even though the figures are less alarming, now is not the time to let bullion back in.

The Reserve Bank of India (RBI) imposed tough rules on gold imports last year in an attempt to tackle the country's crippling current account deficit.

India was among many of the emerging markets that saw their currencies get battered when the U.S. Federal Reserve first floated the idea of tapering its quantitative easing program last summer.

The country's record current account deficit, which showed a $87.8 billion shortfall, in the previous fiscal year to March 2013, had caused the Indian currency's dramatic fall.

more:

http://www.cnbc.com/id/101407311