Gold: villain or saviour?

The logic goes like this. The Indian lust for gold has caused a tsunami of gold imports. That has dented India’s current account with a huge hole. The current account deficit has brought the rupee to its knees. QED: Gold, which has derailed the rupee, is India’s villain. Based on this rationale, the Government has renewed the psychological and fiscal war against gold that had been halted in the early 1990s. But is the perception that gold is the main cause of India’s woes on the external sector, right?

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