This strong move by Prime Minister Narendra Modi on Dhanteras was to bring 102 tonnes of gold lying in the vaults of the Bank of England to India. The gold was first used as collateral in the mid-1990s as part of a $405 million loan to stabilize India’s economy during a financial crisis. It is considered a kind of economic and symbolic landmark in the return of such a gold reserve for India.
RBI is assisting in the repatriation of the same amount through government initiatives within the financial policy that boosts the country’s physical gold reserves. Since September 2022, India has repatriated 214 tonnes of gold from overseas reserve facilities. The move would aim to build India’s economic resilience and prove that India is moving forward toward further economic independence.
This development has struck a chord with the public since it coincides with the festive season when gold holds immense cultural significance. Many interpret it as a return of India’s “glittering glory,” harking back to songs and sentiments that celebrate India’s historical wealth and prosperity, like “Mere Desh Ki Dharti Sona Ugle.”
It strengthens India’s position in the international market because redemption strengthens the currency’s underpinning with physical assets. Coincidentally, it is the first historical redemption of gold and also a fiscal success story, returning value to the economy that had lent it during times of crisis, especially during Diwali.
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