The shine of gold has become a cause for concern, why is India’s treasury becoming empty?

News India Live, Digital Desk: The fondness for gold in India is not hidden from anyone. Be it a festival, wedding or just saving, gold has been the first choice of Indians. But this ‘gold fever’ is now costing heavily on the pockets of our country. According to the latest data, due to huge import of gold, India’s trade deficit has increased to about Rs 2.5 lakh crore. Simply put, we are importing more things than we are sending out, and gold is a big part of this.

Why is this trade deficit getting so high? Actually, the festive season is going on and during this time the demand for gold increases. Buying gold on festivals like Diwali, Dhanteras is considered auspicious. People see it not only as jewelery but also as a safe investment. The increase in gold prices also motivates many people to invest in it, thinking that its price will increase further.

But when we import gold in large quantities, we have to pay for it in dollars. This puts pressure on the foreign exchange reserves available with our country. This has a direct impact on the rupee, due to which the value of the rupee starts weakening against the dollar. Weakening of rupee proves costly for the entire country, because then we get petrol, diesel and other things at higher prices. This has become a big challenge for the economy, especially when we are trying to strengthen our economy. This suggests that our love of gold is, unknowingly, harming our financial health. Now it remains to be seen how the government and the general public are able to control this fascination for gold.