Appeal to Sell Gold to Save Foreign Exchange Reserves: What’s the Full Story and Key Facts?
मुख्य बातें
- •The government has increased gold import duty and appealed to people to reduce gold purchases in order to protect foreign exchange reserves.
- •India holds nearly 25,000 tonnes of gold, most of which is stored in homes and lockers and is not being used productively.
- •Experts say that if people sell 2–4% of their gold holdings, the country’s gold import bill will fall and foreign exchange reserves will be safer.
- •Apart from gold, options like equities, gold ETFs, mutual funds, and government schemes can offer better returns.
Amid rising geopolitical tensions worldwide, Prime Minister Narendra Modi has urged people to stop buying gold and make better use of their existing holdings to help protect India’s foreign exchange reserves. In line with this, the government has also increased the import duty on gold from 6% to 15%. The move has reignited discussions about gold purchases and investments. Experts believe that if Indian households sell just 2–3% of the gold they hold, it could reduce the country’s import bill and strengthen the foreign exchange reserves.
Gold holds deep cultural significance in Indian society. For centuries, people have not only viewed gold jewellery as adornment but also as a means of wealth accumulation. As a result, nearly 25,000 tonnes of gold are stored in homes, lockers, and other places across the country. Most of this vast quantity is held due to emotional attachment and a sense of security, preventing its productive use. Experts suggest that people should utilise their gold more strategically—such as selling it and investing in other avenues—which could not only grow their personal wealth but also support the national economy.
