Gold comfort

There is arguably no single item that has wrecked the country’s balance of payments more in recent times than gold. Since the global economic crisis of 2008-09, India’s gold imports have zoomed from under $21 billion to over $56 billion in 2011-12, accounting for over 70 per cent of its current account deficit increase during this period. No wonder, it has prompted the Government and the Reserve Bank of India (RBI) to resorted to a slew of desperate measures to “moderate the demand” for the yellow metal.

Read Full Story>>