Gold stocks as a result of these cumulative savings are estimated to be huge. Thomas John Muthoot of Muthoot FinCorp, a large lender to farmers and rural communities against mortgage of gold, estimates," Gold stocks both in the official vaults and with households will be at least 50,000 tonnes."
India's gold imports hit a record 162 tonnes in May, as Indians along with other consumers took advantage of a global price slide, and totalled about 380 tonnes from April to July. The government, in urgent moves to curb a current account deficit which hit a record in 2012/13, has hiked import duty three times since January 1
India’s obsession with gold has been blamed for its massive current account deficit, but government efforts to restrict its imports have only given smugglers a golden opportunity.