A STUDY ON EVOLUTION OF GOLD POLICY IN INDIA

In India, the demand for gold is deeply rooted in the country's cultural heritage, traditional values, aesthetic appeal, and desire for financial security. The government implemented various measures, including import and export restrictions, to regulate domestic gold demand. India's gold policy underwent significant changes between 1962 and 2024. These policies had a legal framework and impacted the socio-economic landscape.

The gold policy enabled the government to mobilize funds through gold sales at various times. Gold also has fiscal implications, as part of its demand is driven by black money. The government believes that utilizing private gold stocks can help balance payments and promote fiscal reforms.

In response to economic challenges, the government introduced timely modifications to the gold policy. Efforts were made to reduce smuggling by curbing gold demand and increasing transparency in the gold trade. These policy shifts have influenced gold's performance in India.

The policy reforms have also encouraged some gold retailers to adopt organized practices and adhere to the Bureau of Indian Standards (BIS) mark of quality. This research aims to review India's gold policy reforms and their implications from 1962 to 2020.