The Gold Monetization Scheme (GMS) and Sovereign Gold Bonds Scheme (GBS) approved by the Indian cabinet on Wednesday will help narrow the country’s overall current account deficit, according to Macquarie analysts. Tanvee Gupta Jain notes in her Sept. 10 research report titled “India Insight” that the latest announcements are intended to channelize savings and investments in gold into financial assets.
Indian households have substantial holdings in gold
Jain points out that the Gold Monetization Scheme (GMS) is aimed at mobilizing part of the 22,000 tons of gold held by Indian households and gold held by other institutions into productive use. Highlighting the staggering holdings of Indian households in the form of...
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