Gold Import in India :The Changing Scenario : 2006-12

Increasing Current Account Deficit  (CAD) of India has become a the biggest problem in the development of the Indian Economy.  And has become the world’s third-largest current account deficit facing Country.  It’s facing the danger to reach up to up to  $90 billion.  The main causes for high Current Account Deficit are : 1)      An unending appetite for gold, resulting in huge imports i.e. hundreds of tones of Gold has been imported against the precious and less stock of Foreign Currency .  This underlined that India is the world’s biggest consumer of the Gold.2)      It has played a major role in driving the rupee to a record low. 3)      India imported approximately 860mt.tones of gold in 2012. 4)      Gold and silver imports in April-October, 2013 declined by 12.86 per cent to USD 24 billion compared to USD 28 billion in the same period last year due to the restrictions imposed by the Reserve Bank of India to control the gold imports. The RBI and Central government of Indiatrust that those measures would help to bring down current account deficit. However, the merchants association thinks it would be counterproductive. The RBI restriction would lead to shortage of gold in the domestic market and artificial price rise may take place as well the decline in gold price in international market would not be reflected in local market price because of the RBI order. There is a distinct possibility of gold price rising in domestic market also. These trends in turn would lead to smuggling, black marketing and hoarding of gold which is fatal to the Indian economy. If India can resolve those gold imports related problems, it could solve the country’s economic problems, decline the current account deficit, appreciate the rupee and boost growth

Indian Investors and Chase for Gold : An Appraisal for 2010 and 2011

The  main function of gold in India  was to merely to beautify and act as a status symbol. The emotional investment in it was very huge.  And recycling the same was highly impossible. The current scenario made it clear that an increasing number of Indians are realizing that gold deserves a place not just in the locker at home or at the bank,  but also in their investment portfolio. Gold purchases in India accounted for 32 per cent of the global total in 2010. Also, observed that consumption of gold in India was increased marginally by 1.7 per cent during the year 2011 and  touched around 980 tonnes compared to 963.1 tonnes of the previous year.  Approximately  75 per cent of the total Indian gold is converted into jwellery in 2010, the remainder accounted for by investment and technology.The macroeconomic forecast to 2020 showed,  India is balanced for a very strong period of economic growth and this has significant, positive implications for all forms of gold purchasing in India. The 50 per cent of the Indian population is below 25 years and approximately 150 million weddings are  expected  over the next decade, which will drive gold consumption.OBJECTIVE The objective of the study is ‘to comprehend the ever-growing demand for gold in India irrespective of the continuous appreciation in its prices’.HYPOTHESES The hypotheses is that ‘Indian demand for savings and real income levels will drive gold and  not by price. The concluding observation is that emerging socio-economic trends may provide some challenges to the gold market; however, purchasing will be continued by India’s long-standing and deep cultural affinity towards the  gold. man","serif"; mso-fareast-font-family:"Times New Roman";mso-fareast-theme-font:minor-fareast; mso-ansi-language:EN-US;mso-fareast-language:EN-US;mso-bidi-language:AR-SA'>The macroeconomic forecast to 2020 showed,  India is balanced for a very strong period of economic growth and this has significant, positive implications for all forms of gold purchasing in India. The 50 per cent of the Indian population is below 25 years and approximately 150 million weddings are  expected  over the next decade, which will drive gold consumption