Towards a sensible gold policy

The industry should not be overregulated in the name of developing it or curbing black money

When it comes to gold, India’s policy-making has been less than sensitive to its ethos and the economy. In 1947, restrictions were imposed on import of gold. Then, private ownership of gold bullion was virtually banned: The Gold Control Act, 1962, recalled all gold loans given by banks and stopped forward trading in the metal. In 1963, the production of gold jewellery above 14 carat fineness was banned. In 1968 came another Gold Control Act, which prohibited citizens from owning gold in the form of bars and coins. This legislation killed the official gold market, and a large unofficial market