Role of Gold in India: From Ancient Times to Modern Economic Policy

Prof. Satish Deodhar, the distinguished Founding Member of Pune International Centre and Professor of Economics at the Indian Institute of Management (IIM), Ahmedabad, was the guest speaker for this month’s edition of PIC Adda.
He made a detailed presentation on the significance of gold in Indian society since ancient times and its impact on the Indian economy. He pointed out that while temples in India hold 4000 tonnes of gold, official reserves of gold are only 745 tonnes.
Prof. Deodhar explained that there are multiple ways in which idle gold stock can be recycled and channeled into the financial market. Gold Monetization Scheme (GMS), incentivizing banks and consumers, increasing access to the gold loan network of banks and keeping inflation low were some of the ways in which Indian households could be discouraged from hoarding gold, he said.
He suggested that India should develop the largest gold museum in the world. The lecture concluded with an interactive Q&A session which enriched the discussion.