| Gold imports are looked upon by the authorities with fear and loathing. The insatiable appetite of the Indian buyer for the yellow metal has long been talked about, but is it really a very big problem at this point in time? Indian gold imports (in tonnes) increased at a compound annual growth rate (CAGR) of 1.3% between 2004-05 and 2014-15—from 770.5 tonnes in 2004-05 to 879 tonnes in 2014-15.
True, measures have been put in place to reduce imports, but a CAGR of 1.3% is hardly worth worrying about, is it? What, then was the problem? Gold imports were higher in 2011-12, bloating the country’s current account deficit, but circumstances were different at the time—gold had been enjoying a bull run, while inflation had spooked Indian savers, leading them to view the metal as a safe refuge...............................................Full Article: Source
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