Rural India’s Main Investments: Homes and Gold

  Rural India still continues to hold assets in two principal forms – housing and jewellery.  And these two assets form 93% of the total net worth of the rural average household, according to a study by Chennai-based Institute for Financial Management and Research (IFMR) for the National Stock Exchange (NSE).     So, we … Continued

Why India’s Gold Fascination Worries The Government.

REUTERS/Rupak De Chowdhuri   India’s appetite for gold continues to drive global demand with October imports increasing to 148 tonne from 25 tonne in the same month last year. The Government now appears worried that demand may touch last year’s level of 975 tonne, and is planning to consider restricting shipments to protect the country’s … Continued

Blame Lower Current Account Deficit On Slowing Economy Too

  The good news is that India has brought about a drastic reduction in its frightening current account deficit (CAD) numbers.   The not-so-good news is that the drop did not happen only because of a curtailment of gold imports (by imposing duties).   Rather, it happened because of economic slowdown and a drop in … Continued

Has Gold Smuggling Really Increased In India?

Addressing tax officials on the Customs Day on 28th Jan, Finance Minister P Chidambaram said that there has been an increase in the smuggling of gold to the tune of about 1-3 tonnes every month ever since the restrictions were imposed on the yellow metal last year. IndiaSpend did a quick check to see the amount … Continued