Why in the News
The jewellery industry, led by the All India Gem and Jewellery Domestic Council, has called for revitalising the Gold Monetisation Scheme (GMS) to reduce gold imports and ease pressure on India’s foreign exchange reserves.
About Gold Monetisation Scheme (GMS)
- The Gold Monetisation Scheme was launched by the Government of India in 2015
- Objective:
- Mobilise idle gold held by households and institutions
- Reduce dependence on gold imports
- Integrate gold into the formal economy
Why is Gold Important for India?
- India is one of the world’s largest consumers of gold.
- Gold is used for:
- Jewellery
- Investment
- Cultural and religious purposes
- India imports large quantities of gold annually, increasing:
- Import bill
- Current Account Deficit (CAD)
- Pressure on foreign exchange reserves
| [2016] Which of the following is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?: 1. To bring the idle gold lying with Indian households into the economy. 2. To promote FDI in the gold and jewellery sector. 3.To reduce India’s dependence on gold imports. Select the correct answer using the code given below: [A] 1 only [B] 2 and 3 only [C] 1 and 3 only [D] 1, 2 and 3 |
