“Gold has been deeply entwined in Indian culture for thousands of years. Nowadays, India is by far the world’s biggest buyer of gold and those imports are an increasing drain on an economy that is growing too slowly to reduce widespread poverty. Last year Indians imported 864 tons of gold, about one fifth of world sales. The unquenchable appetite for gold coins, bars and jewelry has swelled India’s trade deficit and weakened its currency, making crucial imports such as fuel more expensive. Industry experts say there are signs that higher import taxes have encouraged smuggling, which hasn’t been a problem since India lifted strict gold controls more than 20 years ago.”
