Nilesh Shah, a part-time member of the Economic Advisory Council to the PM, has voiced his concerns over India’s $5 trillion GDP target. He stated that if it were not for the habit of importing gold, we could have achieved this goal much earlier. In the last 21 years, Indians have spent around $500 billion on gold imports alone. According to Mr. Shah, Indian entrepreneurs like the Tatas, Ambanis, Birlas, Wadia and Adani would have benefited greatly if the money traditionally invested in gold had been invested in their businesses instead.
Mr. Shah emphasized that people often come back with gold jewellery from destinations like Dubai and successfully walk out of the Green Channel at the port of landing. He noted that this rampant smuggling of gold is evidenced by Customs’ gold seizures on a regular basis. Mr. Shah also pointed out that investing in Indian entrepreneurs could have led to significantly higher growth and per capita GDP for the country.
In conclusion, Nilesh Shah has highlighted the negative impact of importing gold on India’s economy and encouraged investors to invest in Indian entrepreneurs instead. By doing so, he believes that we can achieve our $5 trillion GDP target much earlier than expected.