Who is to say if India would have achieved GDP if gold imports were avoided?

A member of the Prime Minister's Economic Advisory Council has said that if the habit of importing gold is not too high, India will be able to achieve the target of Prime Minister Modi's 'Five Trillion Dollar Domestic Product' before long.

 

Nilesh Shah,Prime Minister's Economic Advisory.

 

5 trillion, the economy would have reached 5 trillion if gold import was avoided

Nilesh Shah, a part-time member of the Prime Minister's Economic Advisory Council and a senior leader in the mutual fund sector, added,

In the last 21 years, Indians have spent nearly Rs 41.50 lakh crore on gold imports alone.

Loss, if we had avoided this one habit, our prime minister's target of USD 5 trillion GDP i.e. 41.50 lakh crore rupees could have been achieved long ago.

In financial investments, we have lost one-third of India's GDP due to non-compliance.

Our customs department continues to confiscate gold. This shows that smuggling has increased.

Indian travelers who travel to countries like Dubai and return with gold jewelery easily get out of the airport.

Instead of investing in gold, if we had invested that money in entrepreneurs like Tata, Ambani, Birla, Wadia and Adani, our country's GDP would have grown beyond imagination.

Well, if we do as he says, will the GDP increase?

Whether or not India could have achieved a $5 trillion GDP by stopping gold imports is a complex question that depends on a number of factors, including the impact of such a policy on the economy, the global gold market, and the Indian government's ability to implement and enforce such a policy.

On the one hand, India is the world's second-largest gold importer, accounting for over 25% of global gold demand. This means that a significant reduction in Indian gold imports could have a significant impact on the global gold market, potentially driving down prices. Lower gold prices could then make gold more affordable for Indian consumers, which could boost demand and economic growth.

On the other hand, gold imports play an important role in India's balance of payments. When India imports gold, it pays for those imports with foreign exchange reserves. Gold imports thus help to replenish India's foreign exchange reserves, which are essential for financing imports of other goods and services. A reduction in gold imports could therefore lead to a decline in India's foreign exchange reserves, which could have a negative impact on the economy.

In addition, the Indian government has tried to reduce gold imports in the past, but these efforts have met with limited success. This is because gold is a popular investment in India, and many Indians view it as a store of wealth. The government would therefore face significant political challenges in trying to implement a policy that would reduce gold imports.

Overall, the question of whether or not India could have achieved a $5 trillion GDP by stopping gold imports is a complex one that depends on a number of factors. The potential benefits of such a policy include lower gold prices and increased economic growth. However, the potential costs include a decline in India's foreign exchange reserves and political challenges. Ultimately, the decision of whether or not to reduce gold imports is a complex one that must be made by the Indian government.