To get you started; one must know CAD and it stands for current account deficit and it is the difference between the inflow and outflow of foreign currency, is estimated to be at 5 per cent in 2012-13 fiscal. Huge gold import is one of the reasons for India's high CAD that touched 6.7 per cent of GDP in the October-December quarter
Gold associations can help reduce CAD by not selling gold coins and bars as it will reduce gold import and this will in turn reduce the CAD. This stoppage can reduce gold import to the tune of 10-15 percent every year. These gold associations can take a cue from Reliance Capital which has suspended gold sales across all its businesses. We applaud action taken by Reliance Capital.
All India Gems and Jewellery Trade Federation (GJF) has a membership of 42000 dealers and their proactive action can help India tide over the CAD caused due to rising import of gold and depreciation of Indian Rupee against dollar. You can check daily free gold tips here.
