The unintended consequences of India’s efforts to suppress demand for gold
India has put up the import duty on gold from four to six per cent in an effort to suppress demand. It is the latest in a series of government attempts to rein in India’s gold imports which account for a large proportion of the country’s growing current account deficit. But critics say the lessons from the past show it is the wrong move and could have far-reaching consequences – not just for India but for the global economy.
INDIA is a developing country with hundreds of millions of its people struggling to survive on less than US$2 per day. Yet, it is estimated that households and temples in India privately hold between 18-25,000 tonnes of gold worth more than US$1 trillion which amo...
- Report is targeted to the decision makers in cross country manufacturing – suppliers, manufacturers, logistics.
- Also considered useful for the administrative university facilities, to better understand the possibe effects of current decisions.