Bangalore: The Prime Minister, The Finance Minister, The Finance Ministry of India as well as the RBI are trying to come up with dynamic measures to solve the current problem of falling rupee and improving the Indian economy as a whole. Most of the initiatives taken by RBI met with criticism, and the need of the hour is to come up with some novel idea to curb the current crisis, reports Debiprasad Nayak of The Wall Street Journal.

One of the control measures announced by Government is to increase the import duties on gold. But experts believe that the gold loving Indians will not be affected by the price rise. According to World Gold Council, India currently has around 20,000 tons of gold worth $950 billion. About 2.79 percent of this gold is held by Reserve Bank of India and the rest is under individual possession. Few experts suggest that Government should try to make use of some of this gold. “If we will be able to bring out only 10% of the gold holdings, we don’t need to import any gold for the next two years,” said Haresh Soni, chairman of the Mumbai-based All India Gems & Jewellery Trade Federation.

The gold loan scheme is already practiced in India in which banks accept gold jewelry and bars from individuals and provide loan based on the quantity and current price of gold. The minimum deposit should be of 500 gm of gold. If the amount of deposit is reduced to 100 or 200 grams, it would be feasible for many Indians to use this scheme.  Hence, Government should try and make use of this unproductive asset to increase dollar inflow and reduce gold import.

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