India Gold Monetization: What is the ‘secret formula’ that will change the face of the country? What treasure is hidden in every house of India, which can change the future of the country? What needs to change now to make India a superpower? What is the biggest obstacle to the development of the country?
Viksit Bharat Vision: There was a time when India was called the golden bird. This is absolutely true, there is still gold hidden in every house. If this comes out, the picture of the country will change. According to media reports, Indian households have more than 25,000 tonnes of gold, which is more than the total reserves of the world’s top 10 central banks. On this, Nilesh Shah, Managing Director of Kotak Mutual Fund, while giving his opinion, has given a simple formula to make ‘Developed India’. He says that the country needs to work on two fronts – first, to somehow utilize the gold lying idle in households and second, to reduce the burden of rules and laws for entrepreneurs.
India imported gold worth $510 billion in 25 years
Speaking at an event of the PHD Chamber of Commerce and Industry on Tuesday, Shah said India has spent a huge amount on buying gold in the last 25 years. “In the last 25 years of this century, we have officially imported gold worth $510 billion,” Shah said. He also clarified that this figure is after deducting jewelery exports.
Everyone sounds like Bappi Lahari in foreign flights
On how much gold people have in India, he said that there is no exact figure, but it is estimated that it could be around 25,000 tonnes. “There is also gold smuggling. And if you are coming on a flight from Singapore or the Middle East, every passenger on that flight except you looks like a relative of Bappi Lahiri, loaded with jewellery,” he joked.
How to use this gold lying in the safe
Shah also emphasized that the amount of money we have invested in gold is not equal to the amount of net foreign direct investment (FDI) and foreign portfolio investment (FPI) that has come into the country. Describing gold as an “emotional investment” for Indian households, Shah said policymakers need to find ways to put the metal to work without hurting people’s sentiments. He asked, “How should we monetize or financialize this gold lying in the safe?”
How will gold change the fate of the common man?
- According to Shah, gold financing has already become a big business in the country. “Today, gold loan financing is a Rs six lakh crore business. It is the fastest growing retail business in the last one year,” he said.
- Comparing Indian entrepreneurs to Abhimanyu of Mahabharata, Shah said that our startups and entrepreneurs are changing India despite all the structural barriers.
- He said that even though India’s infrastructure has improved a lot, businessmen still have to face regulatory hurdles.
- Criticizing the archaic laws and cumbersome system, Shah said, “The British left, but they left behind the ‘thug-down’ (strict rules) they had created.”
- He further said that entrepreneurs need stronger policy support to compete in the world.
- Shah said, “We have to focus on supporting our entrepreneurs. We have to support our businessmen so that they can compete with the best in the world.”
India will remain a developed country
- Shah also cited the example of space startup ‘Agnikul Cosmos’ to showcase India’s growing innovation potential. Praising its founder Srinath Ravichandran, he said that the company has made the world’s largest 3D-printed rocket engine in India.
- Shah said, “People like Srinath Ravichandran assure me that India will remain developed.”
- He also said that two Indian companies, including Agnikul Cosmos, are going to try reusable rocket booster recovery technology in the coming months.
- Shah concluded, “All these things have been made in India, within a limited budget and with all the constraints of ‘Abhimanyu’.”