Indian Economy stares at a dismal near future.
The index of Industrial Production IIP has shrunk by 1.8% and situation has been further compromised by double digit inflation numbers which is up at 11.24%.
With the announcement of these economic factors, the situation has just became gloomier for the Congress-led government at New Delhi. The results of the recently concluded state polls has clearly shown the Congress party that the people are not in any mood to tolerate any more indecision and inaction.
The Indian Government comprises of some the top economists who are able to talk impressively about the economic scenario, but who have failed to deliver when it comes to controlling the Indian economic outlook.
Thursday, December 12, 2013
Thursday, June 6, 2013
Gold v/s Current Account Deficit
India economy situation is grim.
Our current account deficit is bloating uncontrolled and the biggest contributor to this is the increasing import of gold. Our citizens are in an increasing rush to buy gold. Statistics show that India has imported an average of 70 tonnes of gold per month during the last fiscal and this import does not seem to stop.
The government is exercising its control to make gold investment difficult, but to no avail
The government has increased in import duty of gold. The finance minister has asked the banks to stop selling gold.
I feel the government is treating the symptom and not the cause. It needs to speculate as to what makes gold so lucrative for the Indian investor. Our policymakers need to create a reliable and safe investment vehicle where people can put their money, instead of gold.
Although, the immediate goal for the government is to somehow stop this inflow of gold, it should to take into consideration the fact that the Indian investors have funds at hand but they do not have venues to invest these funds into.
The financial wizards at the nation's helm also need to evaluate why people do not want to invest in some of the other erstwhile popular investment options like some entrepreneurship venture or shares or real estate or some other business.
Apparently more needs to be done to stop this gold rush.
Our current account deficit is bloating uncontrolled and the biggest contributor to this is the increasing import of gold. Our citizens are in an increasing rush to buy gold. Statistics show that India has imported an average of 70 tonnes of gold per month during the last fiscal and this import does not seem to stop.
The government is exercising its control to make gold investment difficult, but to no avail
The government has increased in import duty of gold. The finance minister has asked the banks to stop selling gold.
I feel the government is treating the symptom and not the cause. It needs to speculate as to what makes gold so lucrative for the Indian investor. Our policymakers need to create a reliable and safe investment vehicle where people can put their money, instead of gold.
Although, the immediate goal for the government is to somehow stop this inflow of gold, it should to take into consideration the fact that the Indian investors have funds at hand but they do not have venues to invest these funds into.
The financial wizards at the nation's helm also need to evaluate why people do not want to invest in some of the other erstwhile popular investment options like some entrepreneurship venture or shares or real estate or some other business.
Apparently more needs to be done to stop this gold rush.
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