ranjan

Gold is among the three primary imports in India which are Crude oil, cooking oil and Gold of which the first two are vital necessities. There are small things the Government can do to decrease the damage dealt by the massive amounts of gold being imported. As a commodity, gold does not add any real value to the productive capacity of the economy. The fluctuations in the economy affects the gold prices in India. The price of gold was seen to reflect the monetary inflation. Rising inflation often coincides with a booming economy. Rise in gold prices can be attributed to the booming economy.   India's gold market is driven primarily by consumption and fabrication of the yellow metal.  Both have a significant effect in terms of economic value employment, contribution of foreign exchange earnings, and the trade balance.    Most of the gold purchased in India is stashed away in lockers, safe boxes or gets converted into jewellery. Those who hold gold are just waiting for it to appreciat