“ Mere Desh ki Dharti sona ugle ……… ”
One of the most popular national song that brings out pride in self-country is age old, “Mere Desh ki Dharti sona ugle ……… ”
Back to current day scenario, and the situation is much different.
As per Economic Survey 2012-2013, www.indiabudget.nic.in, one reason that contributes significantly to the Current Account Deficit is RISE IN GOLD IMPORTS
Almost all of India’s demand for Raw Gold is met through imports.
Imports of goods means that money is going out of India.
There are 3 active gold mines, which meet less than 1% of domestic demand.
The overarching motive underlying the gold rush is high inflation and the lack of financial instruments available to the average citizen, especially in the rural areas.
The rising demand for gold is only a "symptom" of more fundamental problems in the economy.
Curbing inflation, expanding financial inclusion, offering new products such as inflation indexed bonds, and improving saver access to financial products are all of paramount importance.
Gold has been a combination of investment tool and status symbol in India
The recent economic uncertainty has seen people across the board buy gold
So, the next time you hear the song “Mere Desh ki Dharti sona ugle ………”
Enlighten those around you of the current economic situation & ask the person handling musical instrument to play a song more relevant to India’s current economic situation.
JAI HIND !