GOLD IMPORT duty in India is set to be reduced, according to sources in the new BJP government, but there's no word yet on the more important 80:20 rule.

Predicting a series of small reductions to India's 10% gold import duty, "The forex situation will be monitored closely after the first cut," says a source quoted by DNA, "before any further decision is taken."

India's former Congress-led government imposed a series of anti-import rules from 2012, culminating in the 10% duty, import credit ban, gold coins embargo and the 80:20 rule – which requires importers to re-export one fifth of a shipment before booking the next – in mid-2013.