gs1medium
What is/are the purpose/purposes of the 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 Indian’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
▶ Answer & Explanation
Correct answer: C. 1 and 3 only
The Sovereign Gold Bond Scheme and the Gold Monetization Scheme were launched primarily to tap into the vast amounts of idle gold held by Indian households and institutions, thereby bringing it into the formal economy. By providing alternatives to holding physical gold, these schemes aim to reduce the country's reliance on gold imports, which strain the current account deficit. While promoting domestic availability of gold might indirectly benefit the jewellery sector, these schemes' direct objectives are not to promote FDI.
Source: UPSC gs1 2016