Gold is the most precious metal and has a universal value. People have an affinity towards gold since times immemorial. Before the introduction of paper currency, the international trade transactions were carried on the basis of gold circulation. Countries were considered rich that had surplus gold reserves; even today gold happens to be the most determinant in economic growth and international monetary system. India is one of the top ten countries in the world for hoarding gold and also the third largest consumer of gold. Gold imports have been one of the major reasons for rising import bill and a persistent deficit in the current account trade balance. The present study is undertaken to understand the efforts of the Government of India to reduce gold imports for which it has introduced three schemes for monetizing gold and thereby try to reduce the current account deficit. Though the schemes seem to be effective, the study reveals that these schemes have not been so popular or successful in bringing the idle gold for monetization because of the emotional attachment of the people towards possessing gold.
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