Video Editor: Mohd Ibrahim
So much demand of gold is not good for the economy. Talking to The Quint, Kotak AMC MD Neelesh Shah said that for any country, it is important to invest. The country needs to have domestic savings, otherwise it will need foreign savings.
According to Neelesh, in the last eight years – between 2011-2018 – India has imported $245 billion in gold and expensive gems. India has to grow 10-12%, but to get to that level growth, we need savings... which we do not have.
When asked why Indians are obsessed with gold, Shah said that the poor often have to move around with their money, so they convert those savings into gold instead.
People donate gold in temples. Temples should invest the extra gold in gold bonds.
We should make sure that people do not invest the money that is supposed to be for gold investment in black money, Shah says.
He also points out that we charge 12% import duty on gold. In this way, importing gold is made expensive for us.
According to Shah, we should cooperate with jewellers so that they can bring gold bonds to market properly. We should take those jewellers who make 22 and 24 carat heavy gold. They should make light jewellery of 12-14 carats so that people can afford gold. And do not spend your money on heavy jewellery.
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