Marriage and festive demand, and high inflation are pushing gold imports. Decline in interest rates on savings instruments, and equity market issues could boost this further.
The likelihood of financial distress caused by the 2nd wave is much higher & it could lead to more outright sales of gold, unlike in 2020, when people chose to take out loans against gold.
Newspapers are filled with ads of gold jewellery auction amid indications of economic distress faced by Indian households. But resurgence in gold prices could stem the auctions.
The growth in India is coming from the 18-35 year old cohort. Latest World Gold Council data indicates Indian adults under age 34 have less appetite for gold than older consumers.
RBI data shows a sharp increase in households borrowing against gold. Other indicators also show higher borrowing. More credit is fine, but vaccination needs priority.
Recovery in India's gold demand, which bounced back in the first three months of 2021, has faltered again as surging infections force many states to impose lockdown-like curbs.
Gold purchases in India, world’s second-biggest consumer, jumped 37% in January-March period after slumping to the lowest in more than 2 decades last year.
In Episode 677 of #CutTheClutter, Shekhar Gupta explains why Modi government’s decision to cut import duties on gold might be the beginning of a reformist reversal.
MGNREGA’s core strength was: if you needed work, you got work. VB-GRAMG’s funding model means work will only be available if a state has the budget and the Centre has approved the allocation.
RBI Handbook of Statistics shows state’s GSDP has more than doubled in past decade, finishing second behind Maharashtra. It has performed well across health & education parameters as well.
It is argued that India-Israel ties are moving from buyer–seller dynamic to one focused on joint development & manufacturing partnership, a shift 'more durable' than traditional arms sales.
Don’t blame misfortune. This is colossal incompetence and insensitivity. So bad, heads would have rolled even in the old PSU-era Indian Airlines and Air India.
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