This refers to the article on "India's fetish for gold( ET Dt, 20 th Dec2010).It is well known that India has a weakness for Gold and it is unlikely to have a shift away from gold into financial savings.The crux of the matter is that investments in gold is unproductive as the economy is concerned. The economy has high growth aspirations and there is urgent need to develop the infrastructure to support the growth.It would be worthwhile to think of establishing a National Gold Bank taking advantage of huge holdings of gold and with the backing of gold money can be raised to finance the infrastructure. There can also be a regulated way of investments in gold and subsequent dealings in gold if there is such a bank.
T.V,Gopalakrishnan
( This appeared in ET dated 24 th December 2010)
Saturday, December 25, 2010
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