The government would review its policy on gold import to strike a balance between the demand and supply of the precious metal, Commerce & Industry Minister Anand Sharma said.

Mr. Sharma said that the Reserve Bank of India (RBI), the Directorate General of Foreign Trade (DGFT), the commerce secretary, and the economic affairs secretary will take a collectively decision after discussing the matter.

He added that he would he would also hold a discussion with Finance Minister P Chidambaram on revisiting the import norms.

Speaking on the topic, he said, "We are constantly monitoring (the gold import situation). as and when the situation demands, I will discuss with the Finance Minister (on revisiting the import norms)."

India is the world's largest importer of gold. During the April to September period of last year, the country imported 393.68 tonnes of gold, which added to its current account deficit (CAD) woes. The government and the country's central bank imposed some curbs on imports of the precious yellow metal to deal with widening CAD.

Mr. Sharma also hinted in favour of relaxing foreign direct investment (FDI) in railways and constructions sectors. Last year, the Congress-led UPA government relaxed FDI norms in many sectors like telecom, defence, state-run and oil refineries. During the UPA-II regime, the FDI into the country is expected to reach more than US$220 billion.