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👢रंडीबाजी का औलादों भारतीय राष्ट्रपति प्रधानमंत्री होममिनीस्टर मोहनभाग वत,,, अपने समस्त खानदान परीवार से 9-18 वर्ष के बच्चों की नरबली दे अन्यथा अयोध्या शमशान में बदल दूंगा☠🩸घोर अघोर विद्या के जनक🩸☠
If smuggling was so easy everyone in India would have become a Pablo Escobar. The Govt's notorious flip-flop on gold makes establishing a smuggling racket DIFFICULT. It is likely to be temporary and once wedding season kicks in, Govt will reverse it. Some level of smuggling will happen but it won't be too high. The move is aimed to arrest the decline of the Rupee. The tax collection will shore up revenues. We had many unexpected expenses this year. Windfall tax was also brought in for similar reasons.
Sorry Sir, this was the first time, many of your facts were not up to date. Export Demand of Gold do not increase for planning advance sales but it's always to refill the stock sold during that month or even that day . It's like you buy the amount of gold you sell in that period. This year 1st week of May was Akshay Tritiya and it was biggest in last 3 years due to lockdown, which cleared lot of gold from shelves , so the jewellers had to buy the gold back to full their stocks back. June will not be that big , now the bigger chunk will come in the month of Diwali.
Everyone buys to fulfill demand and not to restock empty shelves. I've worked in a distribution company. That's the most cost efficient manner to manage inventory
The biggest exporter of gold in Switzerland is an Indian owned company called Rajesh Exports whose HQ is in Bangalore. India is their biggest customer.
@@orkkojit when you are a company with large number of transactions a portion of those transactions will always be suspect. There's no 100% compliant or 100% clean business companies at all.
Healthy import growth is also an indicator of good domestic demand which inturn is a good economic indicator. Currently all the government everywhere in the world are just trying to dampen the demand instead of finding a meaningful solution to the supply side issues.
So long as proportion of Gold & Petrol in our Import basket is reasonable- the balance comprising mostly of industrial consumables, growth in Import would catalyze economic activity in the country and is something to be welcomed.
The one thing we haven't talked about was the India-UAE FTA has led to 200 tonnes approx of Gold is duty 🆓. Either Govt is trying to make up for that loss or a combination of factors. Either ways Gold smuggling can take beating if 200 tonnes are duty free atleast from UAE.
Missing the most important points. As dollar is gaining, India's forex has taken a hit. Govt wants to take some action to maintain forex, just like Srilanka came up with plans to protect its forex. Hope India wont Srilanka way. Unfortunately increasing tax encourages smuggling and black money.
I see the ONLY sensible comment is yours. It is all about Modi govt is trying to stop the Indian currency free fall but it is too late. Unless you increase your productivity and jobs, this can't be stopped. The speed which money inflows now goes out so faster. Enjoy the ride, poor innocent people who never be part of this mess are going to pay more from rice to biscuit.
Taxes beyond a certain point is a license to smuggle. This activity which had died is on a rapid rise since the GOI has made it profitable again. Bribes commected to gold have increased too BJP has understood this and is the MOJOR reciepient of this payout. THAT is why this government is taxing gold so much.
They are doing this to discourage the import of gold , smuggling may become profitable but then the amount of gold that can be smuggled would also be way less compared to our current imports through official method. Also demand of gold would also be plunged considering the amount of gold that can be brought in through duty free is way high. They are just trying to stabilize RUPEE , it has become very volatile of lately. That's why they have also allowed individuals to receive 10lakh from relatives living abroad without informing MHA from 1 lakh. They want to control the outflow of rupee in the market. Also one crucial point you missed is that already smuggling gold from abroad into INDIA makes no sense because most of that is already used in jewellery making. That already attracts a making charge. People always have options to invest in gold through SGBs issued by GOI which are way more profitable.
Easiest approach to gold issues is 1. Allow duty free import of gold, if received as gifts from overseas Indians. 2. Reduce tax from 3% to 0.1% on gold and ornaments. In current currency suspense era, most money would come back to India without any effect on inflation apprehensions. Reduction in taxes will enhance exchange-abilty. India will be gainer, for sure.
There is a kannada proverb: Hot ghee in the throat can neither be swallowed, not spat out". Gold is the hot ghee for India. India can neither ban gold import, nor tax it highly, nor throw open India for the gold market. Government is doing the best out of a bad situation.
The recent import data shows India spent massive 8n imports of which 3 stood out- coal, petroleum, and gold. India can not exist without the first two so the only option left to reduce import costs is gold. Good decision.
Govts mainly state n local made real estate artificially high by zoning making it affordable only to uper middle class and above,lower middle class have only gold as practical investment
It is not import/export what you talking about to increases the tax on gold. It is because of Indian currency is free fall right now which will make our country complete chaos. To increase the currency reserve to improve the currency valuation only they increase the tax. Wait for the day to tax you to wear your underwears soon 🤣🤣🤣
Slight error that I noted: On timestamp 19:12, the chart shows both the quantity (in kgs) and value (in crores). I believe Mr. Gupta confused the Value for Quantity
As it is, the import duty is already high. So there was no need to increase it. SG is really naive, explaining things as though this BJP government is honest! This will only help you know who, This person has ports and airports and recently there was a huge catch of drugs. So you know who will benefit! Shekhar ji!!!
In 1964 , 24K gold was sold @ Rs. 64 for ten gms . Today , you can sell 24 K gold @ Rs.52450/- per ten gm . Indians can calculate the benefit of investing in gold themselves .
I think you are missing a significant point. Gold is a hedge for currency devaluation / inflationary pressures. Also, the stock market is going down and so is crypto. So smart money is looking for other avenues which typically are precious metals. Moreover, one also has to think of why our own govt is buying more gold. This is being done to hedge against a future risk or a falling dollar. Also, govt may be pushing the taxes on gold imports to stop more dollar spending as that hurts our govt too. The resultant impact is counter productive as you have pointed out. If you look at gold imports, most large economies are doing the same. Importing / buying more gold. This is to ensure they move away from the dollar as the world reserve currency. What u are reporting is a stage one of a massive shift of global macro shift. It may be interesting to go back to times when dollar gold pegging was removed by Nixon in the 1970'
Small correction here HMT wasn't the only watch brand at that time. There were dozens of them being made in india. Most of them used Swiss movements. H&G, Anglo Swiss, Sreesalyam, to name a few. Allwyn had a partnership with Seiko. HMT had with citizen. The latter two of them had the largest market share, but were, by no means, the only watch brands around. There were also licensed Swiss manufacturers. West End was a very popular foreign manufacturer, which later shifted it's primary market to the gulf. Favre Leuba was another Swiss brand which kept selling in India. Tata's bought Favre-Leuba global recently.
Sir, i agree wth you. At times, I feel, that many of the decisions of the government are exactly contrary to the philosophy of BJP. Bureaucracts are apparently running the show. ( am myself one).
As far as the dumb data thing of India mostly consuming gold domestically is concerned, I differ on the fact as Jewellery is always the 2nd or 3rd biggest sector in India's export. I'm trying to find but wasn't able to get any data on how much of India's imported gold is re-exported as Jewellery with value added to it. It would be gr8 if you have a look at that!!
$34.6 billion of gold was imported in (2020-21) while $6.6 billion of gold and other precious metal jewellery was exported in (2020-21). (data: Economic Survey 2021-22). Guptaji is definitely right about domestic consumption of gold.
@@champaran9289 A print report itself dated Dec 3 2021. (can't put the link here) quotes Minister Goyal putting the figure at $40 billion. You might search it as India jewellery exports (the print). That figure vs the figure quoted in this CTC that is $55 billion tells a different story. Even the economic survey 2021-22 on page 116. points to a different figure. I do realize all of it isn't gold but still the CTC & the report from print contradict each other. Thanks for the idea anyways
Mr.Shekhar Gupta, mood swings regarding cost of living, supply chains, and increasing federal interest rates might be an indicator of what's to come. Legally speaking, gold and a few other investments are considered to be tax sheltered assets in times of turbulence. I rather have my household in order than to be caught up in a storm.
Likely, India wants to plug Gold Consumption to stabilize weakening Rupee and stay safe in impending world financial turmoil. See, Foreign exchange crisis in neighborhood.Any changes will have consequences. Criticism mixed with benefits (Full picture) would have made an unbiased post IMO.
May be this is going encourage smuggling. However, there is age old RBIs Sovereign gold bonds scheme, 1. you don't pay taxes on buying, 2. You get interest (4%) 3. You don't pay capital gains tax 4. You don't need to pay import taxes You deal with government of India especially RBI.
Tax on gold has always been increased and decreased on and off. This is not a new approach by the Government, its been persistent one, always. Also, Gold is certainly not a good investment by any measure, you were right in mentioning that price of gold didn't go much. Certainly its not 15% hike in tax, its 5% + few basis points increase as the base to calculate cess and other taxes has been increased from 7.5% to 12.5%, please calculate and give right picture.
Hi Shekhar Ji, there was a mistake while explaining the gold seizure data. You read the figures in Crores while referring these as kgs of gold @19:15 onward.
As a gold averse person, I find it interesting why people invest in gold. One reason is that people feel it's a safe haven asset. Gold will always have a value as it's a rare commodity. However it fails miserably from portability and divisibility standpoint. Gold has given a return of 12% CAGR over the last 20 years whereas Nifty50 has given 14% without the burden of carrying a clunky asset. Rather than increasing taxes, govt should find creative ways to control gold obsession. Making gold difficult to own is one way to go. Stop institutionalizing gold. Banks shouldn't accept gold in lockers. Jewellers shouldn't get insurance. Make the whole jewellery business difficult. Stop gold loan business. Just like currency, gold's value is also in the mind. It's a question of not giving it that value.
People like you can suggest , if RBI holding thousands of Qts. of gold must throw all gold in the streets so that gold-hungry take that gold to their homes and do not buy gold or import gold .
Mr SG ji .....why no support for your fellow journalist and activists ? being arrested on fake charges .....no video ....not even a tweet ...... Stand up for your profession
Thanks shekharji for detailed explanation. I as a subscriber of the print request you to talk more about economy and cut the clutter of the geoeconomic and geoeconomics
@theprint : hi there, dont want to sound harsh but did you run out of gold stores in india to use in your video cause all the stores that you have used as reference are nepal stores.
Shekhar, a mobile in place of your famous yellow sheets! Good! You are an inspiration to learn new technology for us, the old unfortunate people whose children & grandchildren stay away and thus NOT having the needed assistance on call.
The logistics for smuggling here will be tricky. You can parallel import gold but the transportation costs will add up. I think price escalation will in fact rise the costs which will more than offset the 5% increase. Smuggling works the best when there is a total ban.
agree on this, many NRIs also try to bling illegally , yes airports do the checking, but not very efficient checking in all the places .. but same time younger generation not showing interest on gold purchase , this can increase their numbers.. so both plus and minus r there.. it may not be life 1990s smugling that easy now, but sure some impact will be there..
Fact is that No GOI has been able to pin down , massive desire of Indians for Gold. Plethora of schemes have been launched , ETF , gold deposit scheme , payment mode tightened but to no avail. So are the Govts on a wild goose chase. Why keep moving in circles and accept the fact and plan something else.
I hope the Modi govt is realising how difficult it is to manage the economy. Hopefully, it will make them humble. Modi.2 is now marked by Inflation, slow growth, high unemployment, lower consumption, etc. There seems to be a lot of activity taking place and yet so less to show for it in terms of growth. Govt really needs to have a hard look at itself in the mirror and bring about necessary change - releasing uncomfortable data, introducing reforms after proper pilot studies (man, even an M Phil thesis has pilot studies), and lengthy consultation. Modi is great (perhaps) but all the policies flowing down from the PMO alone has been a disaster. There has been so many knee jerk reactions
@@gperiaswami3971 You will know if there is less corruption or more only when govt is changed.. Now all the agencies are busy in targeting opposition..
India is a country where no reforms will take place even in 10 years if the government is busy in doing consultations with everyone. Impossible. And if you think governemt has earlier rolled out reform policies which got boycotted by people without doing pilot , then you are ignorant . As simple as that.
Main reforms are farm,land and labour and if you do any one of it India will burn there will riots on the street. India will face trade deficits until these reforms are done and govt. recruits bearucrats on knowledge of subjects not ancient history and philosophy
What do you think that govts should to do to reduce current account deficits? Please do a CTC on this deficit, inflation and currency devaluation businesses its all quite confusing.
falling markets and reduced returns from deposited and high taxation + inflation due to govt policies is what driving people to purchase gold. that's only saving which can protect ones investments. u can see last year in year increase in gold import is due to fear of govt failures and no confidence building measures from govt.
The link to increase in taxes to increase in smuggling is not a straight line. Am sure the government thought through this before implementing. Also really reducing the desire for gold will help us a lot in long term.
Gold is peoples money, Gold is the power that people possess and governments dont like that. if you were in venenzuela, argentina, pakistan , srilanka , libya , iran or russia then you are better in gold than your local currencies.
The "GOLDEN RULE": "Those with the gold get to rule." The better investment is tungsten rod which is used to counterfeit gold bullion. Some say there are three factories in China running nonstop... lol
While increasing tax on gold import is okay, it will result in more smuggling, black money, financing of terror activities etc. Govt must spend resources on raising awareness about buying Gold Bonds rather than buying gold physically. Artificial jewelry should be popularized. All this would reduce demand for physical gold and reduce imports in the long run. Also, Govt should withdraw Rs. 500 and Rs. 2000 notes from circulation and replace them by e Rupee in the form of a free e-wallet from RBI, aka free Paytm. This will help curb black money.
If only the ED is used to crackdown on real cheaters. Tax evasion is rampant because of which the black money increases and people prefer to hold their assets in gold They have all the data with assets linked to Adhar. If there is one department that needs more staff, it is the ED and successful prosecution
It may cheer Smugglers but hopefully not Mr Gupta. Government should do the right thing without worrying about smuggling, which is what this Govt has done. Every move of the Govt will cheer someone while bringing sorrow upon others.
You are a great AndhBhagat of BJP and their Govt. You appreciate every word and action of Govt. without applying your brains . Be happy , you are not alone . There are millions who view Mr. Modi as their God . But India is going down everywhere ,internally and externally . Very Sorry fo India -I am .
Is it possible that the word was leaked out well before the announcement that the tax was going to be raised in a month or so, and the industry simply went all out to get as much in to the country in May as was possible? Else a 7x increase is very, very difficult to swallow.
Very good speech in gold department from India to poo RR people need gold not only high money people need gold when they die gold gone Prime minister if die no gold no money take along so think better'...
The UAE India FTA agreement would nullify smuggling upto 200 tonnes I think. This means that there's no incentive for smugglers through this route anymore. Now they have to take the more lengthier, expensive routes from Europe or Africa...and I am from Kerala.
I don't think we need to fear about imports, if we are to export then we should be importing. Trade happens two way. We can't go out and say to world that, y'al buy everything from us, we ain't gonna buy anything from you. This fear of import and thirst for self sufficiency should be avoided.
I am a paid subscriber of print because I appreciate the kind of journalism you’re doing which is based on facts , evidences and also pretty much unbiased. My only problem is , i am unable to understand many hindi words you are inserting in between your narration as I am from south of India
I understand what you just said, but he generally does it while doing some story telling. That doesn't have much value in terms of information, just makes the ctc piece a bit more entertaining. Having said that, I agree he should either use English or add subtitles for those lines
Get more Indians access to stock market. Just like we have rupay create a ecosystem for stock trading and you’ll see a bigger boom in stock prices, more funding will be unlocked for companies to expand creating more employment, generate tax and increase wealth domestically Stop coal imports by improving the logistics of coal transport. India has always been able to produce more coal with reserves/ manpower to dig it out but cannot evacuate coal fast enough out of the mines as we don’t have enough rail capacity by lines as well as rakes.
If confidence of stock price becomes good, people will invest it. Meaning Companies should turn profitable in global way. Until then people won't think to invest
@@soonyanaidu7875 our major mines are hinterland compared to ones that are closer to tidewater like Australia or Indonesia. Also expanding mining capacity in Australia is demographically possible due to low population density. Combined the 2 imported coal will be cheaper. Also politicians devised a scheme to charge more for the imported coal and launder the money to a foreign country. Through this route it has become more lucrative to launder corruption money.
Shekhar sir u should run a report on how the salaried class is taxed... the high level of taxation and low level of social support offered.. one of the reason for brain drain
Shekharji, like so many times your team goes one or two layers deep but never to the bottom gold and gems are the fav method of the rich like Choksis and modis to do round tripping ie stashing cash abroad
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👢रंडीबाजी का औलादों भारतीय राष्ट्रपति प्रधानमंत्री होममिनीस्टर मोहनभाग वत,,, अपने समस्त खानदान परीवार से 9-18 वर्ष के बच्चों की नरबली दे अन्यथा अयोध्या शमशान में बदल दूंगा☠🩸घोर अघोर विद्या के जनक🩸☠
“I don’t understand all of that, but I am explaining it to you.” - Sir, we should capture such quotes from your videos!
😁
Sekhar sir's humility is really adorable
😅😅👌
hahaha
If smuggling was so easy everyone in India would have become a Pablo Escobar. The Govt's notorious flip-flop on gold makes establishing a smuggling racket DIFFICULT. It is likely to be temporary and once wedding season kicks in, Govt will reverse it. Some level of smuggling will happen but it won't be too high. The move is aimed to arrest the decline of the Rupee. The tax collection will shore up revenues. We had many unexpected expenses this year. Windfall tax was also brought in for similar reasons.
True, small ammount smuggling will happen but our agencies will be on high alert
No this is not about smuggling, this about gold becoming a rival to Indian rupee.
True. even when the taxes were low, there is always gold smuggling into the country, its only the quantity varies.
@@subramrami1274 Not true, if you smuggle gold you don't pay taxes. No, India government doesn't want using it as an alternative currency India rupee.
@@subramrami1274 Just make you understand If I pay you gold Subram for farm work you did over the summer, that is alternative currency.
Sorry Sir, this was the first time, many of your facts were not up to date.
Export Demand of Gold do not increase for planning advance sales but it's always to refill the stock sold during that month or even that day .
It's like you buy the amount of gold you sell in that period.
This year 1st week of May was Akshay Tritiya and it was biggest in last 3 years due to lockdown, which cleared lot of gold from shelves , so the jewellers had to buy the gold back to full their stocks back.
June will not be that big , now the bigger chunk will come in the month of Diwali.
Everyone buys to fulfill demand and not to restock empty shelves. I've worked in a distribution company. That's the most cost efficient manner to manage inventory
Yeah agree
The biggest exporter of gold in Switzerland is an Indian owned company called Rajesh Exports whose HQ is in Bangalore. India is their biggest customer.
Rajesh Exports was last being investigated for black money by the ED in June 2016 according to TOI
@@orkkojit when you are a company with large number of transactions a portion of those transactions will always be suspect. There's no 100% compliant or 100% clean business companies at all.
@@libshastra True but one must keep an eye nonetheless lest we produce another Mehul Choksi (who dealt in diamonds) Nirav Modi or Vijay Mallya
@@orkkojit that's why we should look at convictions rather than raids.
I find regulatory actions more reassuring rather than the lack of them.
Healthy import growth is also an indicator of good domestic demand which inturn is a good economic indicator.
Currently all the government everywhere in the world are just trying to dampen the demand instead of finding a meaningful solution to the supply side issues.
So long as proportion of Gold & Petrol in our Import basket is reasonable- the balance comprising mostly of industrial consumables, growth in Import would catalyze economic activity in the country and is something to be welcomed.
The one thing we haven't talked about was the India-UAE FTA has led to 200 tonnes approx of Gold is duty 🆓. Either Govt is trying to make up for that loss or a combination of factors. Either ways Gold smuggling can take beating if 200 tonnes are duty free atleast from UAE.
Missing the most important points. As dollar is gaining, India's forex has taken a hit. Govt wants to take some action to maintain forex, just like Srilanka came up with plans to protect its forex. Hope India wont Srilanka way.
Unfortunately increasing tax encourages smuggling and black money.
I see the ONLY sensible comment is yours. It is all about Modi govt is trying to stop the Indian currency free fall but it is too late. Unless you increase your productivity and jobs, this can't be stopped. The speed which money inflows now goes out so faster. Enjoy the ride, poor innocent people who never be part of this mess are going to pay more from rice to biscuit.
Taxes beyond a certain point is a license to smuggle. This activity which had died is on a rapid rise since the GOI has made it profitable again. Bribes commected to gold have increased too BJP has understood this and is the MOJOR reciepient of this payout. THAT is why this government is taxing gold so much.
They are doing this to discourage the import of gold , smuggling may become profitable but then the amount of gold that can be smuggled would also be way less compared to our current imports through official method. Also demand of gold would also be plunged considering the amount of gold that can be brought in through duty free is way high.
They are just trying to stabilize RUPEE , it has become very volatile of lately. That's why they have also allowed individuals to receive 10lakh from relatives living abroad without informing MHA from 1 lakh. They want to control the outflow of rupee in the market.
Also one crucial point you missed is that already smuggling gold from abroad into INDIA makes no sense because most of that is already used in jewellery making. That already attracts a making charge. People always have options to invest in gold through SGBs issued by GOI which are way more profitable.
Easiest approach to gold issues is
1. Allow duty free import of gold, if received as gifts from overseas Indians.
2. Reduce tax from 3% to 0.1% on gold and ornaments.
In current currency suspense era, most money would come back to India without any effect on inflation apprehensions.
Reduction in taxes will enhance exchange-abilty.
India will be gainer, for sure.
But then tax authorities will lose their importance
Are you nuts. Gold imports cost india in revenue. ie we are loosing revenue
Thanks
Excellent! No sensationalism of Swapna Suresh et al. Right mix of markets, economics, data and inside info.
There is a kannada proverb: Hot ghee in the throat can neither be swallowed, not spat out". Gold is the hot ghee for India. India can neither ban gold import, nor tax it highly, nor throw open India for the gold market. Government is doing the best out of a bad situation.
The recent import data shows India spent massive 8n imports of which 3 stood out- coal, petroleum, and gold. India can not exist without the first two so the only option left to reduce import costs is gold. Good decision.
Govts mainly state n local made real estate artificially high by zoning making it affordable only to uper middle class and above,lower middle class have only gold as practical investment
It is not import/export what you talking about to increases the tax on gold. It is because of Indian currency is free fall right now which will make our country complete chaos. To increase the currency reserve to improve the currency valuation only they increase the tax. Wait for the day to tax you to wear your underwears soon 🤣🤣🤣
Anyone else notice the absolute gem by Shekhar " I can't understand it, I am explaining it to you" 😃😃
Yeah same as Gas from naala 😂
Videos like this are the reason why i subscribe to this channel
Slight error that I noted: On timestamp 19:12, the chart shows both the quantity (in kgs) and value (in crores). I believe Mr. Gupta confused the Value for Quantity
Sir, you mistakenly read the value in crores as quality in kgs at 19:09
As it is, the import duty is already high. So there was no need to increase it.
SG is really naive, explaining things as though this BJP government is honest!
This will only help you know who, This person has ports and airports and recently there was a huge catch of drugs. So you know who will benefit! Shekhar ji!!!
Interesting.
In 1964 , 24K gold was sold @ Rs. 64 for ten gms . Today , you can sell 24 K gold @ Rs.52450/- per ten gm .
Indians can calculate the benefit of investing in gold themselves .
I think you are missing a significant point. Gold is a hedge for currency devaluation / inflationary pressures.
Also, the stock market is going down and so is crypto. So smart money is looking for other avenues which typically are precious metals.
Moreover, one also has to think of why our own govt is buying more gold. This is being done to hedge against a future risk or a falling dollar.
Also, govt may be pushing the taxes on gold imports to stop more dollar spending as that hurts our govt too.
The resultant impact is counter productive as you have pointed out.
If you look at gold imports, most large economies are doing the same. Importing / buying more gold. This is to ensure they move away from the dollar as the world reserve currency.
What u are reporting is a stage one of a massive shift of global macro shift.
It may be interesting to go back to times when dollar gold pegging was removed by Nixon in the 1970'
This. The fiat system is becoming incredibly instable.
Small correction here HMT wasn't the only watch brand at that time. There were dozens of them being made in india. Most of them used Swiss movements. H&G, Anglo Swiss, Sreesalyam, to name a few. Allwyn had a partnership with Seiko. HMT had with citizen. The latter two of them had the largest market share, but were, by no means, the only watch brands around. There were also licensed Swiss manufacturers. West End was a very popular foreign manufacturer, which later shifted it's primary market to the gulf. Favre Leuba was another Swiss brand which kept selling in India. Tata's bought Favre-Leuba global recently.
Instead of this India should sign an agreement with Russia for importing Russian Gold which is under EU sanctions.
Smart idea
Sir, i agree wth you. At times, I feel, that many of the decisions of the government are exactly contrary to the philosophy of BJP. Bureaucracts are apparently running the show. ( am myself one).
As far as the dumb data thing of India mostly consuming gold domestically is concerned, I differ on the fact as Jewellery is always the 2nd or 3rd biggest sector in India's export. I'm trying to find but wasn't able to get any data on how much of India's imported gold is re-exported as Jewellery with value added to it. It would be gr8 if you have a look at that!!
$34.6 billion of gold was imported in (2020-21) while $6.6 billion of gold and other precious metal jewellery was exported in (2020-21). (data: Economic Survey 2021-22). Guptaji is definitely right about domestic consumption of gold.
@@champaran9289 A print report itself dated Dec 3 2021. (can't put the link here) quotes Minister Goyal putting the figure at $40 billion. You might search it as India jewellery exports (the print). That figure vs the figure quoted in this CTC that is $55 billion tells a different story. Even the economic survey 2021-22 on page 116. points to a different figure. I do realize all of it isn't gold but still the CTC & the report from print contradict each other. Thanks for the idea anyways
India export diamond
usually indias jewellery exports are related to gemstones, not reallly re export of gold jewellery
Mr.Shekhar Gupta, mood swings regarding cost of living, supply chains, and increasing federal interest rates might be an indicator of what's to come. Legally speaking, gold and a few other investments are considered to be tax sheltered assets in times of turbulence. I rather have my household in order than to be caught up in a storm.
"What we are very proud of, is that we penetrate the global cabinets of countries."
Klaus Schwab 2017. (World Economic Forum)
Such a stupid Idea. Already so many becoming millionaires by smuggling gold in Kerala
Tax till you drop
30% of everything is their current dream.
Remember 97.5% by Indira Gandhi.
Politicians NEVER learn.
Likely, India wants to plug Gold Consumption to stabilize weakening Rupee and stay safe in impending world financial turmoil. See, Foreign exchange crisis in neighborhood.Any changes will have consequences. Criticism mixed with benefits (Full picture) would have made an unbiased post IMO.
May be this is going encourage smuggling.
However, there is age old RBIs Sovereign gold bonds scheme,
1. you don't pay taxes on buying,
2. You get interest (4%)
3. You don't pay capital gains tax
4. You don't need to pay import taxes
You deal with government of India especially RBI.
Which government in the world won’t like an intellectual critique like Shekhar !!!
Tax on gold has always been increased and decreased on and off. This is not a new approach by the Government, its been persistent one, always.
Also, Gold is certainly not a good investment by any measure, you were right in mentioning that price of gold didn't go much.
Certainly its not 15% hike in tax, its 5% + few basis points increase as the base to calculate cess and other taxes has been increased from 7.5% to 12.5%, please calculate and give right picture.
I believe Gold is not meant for investment but for preserving your wealth. Note by gold I mean Gold bonds which are taxfree and not jewellery.
Hi Shekhar Ji, there was a mistake while explaining the gold seizure data. You read the figures in Crores while referring these as kgs of gold @19:15 onward.
Kerala CM is a happy man.......rubbing his hands gleefully 😜😜💰💰
On one side its said that people are not having money due to inflation, but on other side there is huge imports of gold. who is buying???
Well said,hope their Pan numbers will help track tax evaders,since it's a known fact that tax compliance seems to be low in this country.
Better caption would be ' why Pinarayi Vijayan is thrilled'😁
Sir, The directorate of revenue intelligence chart was read wrongly. The Values was misread as Kilo
As a gold averse person, I find it interesting why people invest in gold. One reason is that people feel it's a safe haven asset. Gold will always have a value as it's a rare commodity. However it fails miserably from portability and divisibility standpoint. Gold has given a return of 12% CAGR over the last 20 years whereas Nifty50 has given 14% without the burden of carrying a clunky asset.
Rather than increasing taxes, govt should find creative ways to control gold obsession. Making gold difficult to own is one way to go. Stop institutionalizing gold. Banks shouldn't accept gold in lockers. Jewellers shouldn't get insurance. Make the whole jewellery business difficult. Stop gold loan business. Just like currency, gold's value is also in the mind. It's a question of not giving it that value.
People like you can suggest , if RBI holding thousands of Qts. of gold must throw all gold in the streets so that gold-hungry take that gold to their homes and do not buy gold or import gold .
"Am not expert but am explaining" summarizes his knowledge.
Please try to put the numbers in a chart left or right of the video, this would greatly improve the quality.
Wonderful Analysis 👌
Law of Diminishing Returns
Mr SG ji .....why no support for your fellow journalist and activists ? being arrested on fake charges .....no video ....not even a tweet ......
Stand up for your profession
Thanks shekharji for detailed explanation.
I as a subscriber of the print request you to talk more about economy and cut the clutter of the geoeconomic and geoeconomics
Hi Sangram, thanks for your feedback.
Fact is that more than 60% of the people purchase gold with out a proper bill.
@theprint : hi there, dont want to sound harsh but did you run out of gold stores in india to use in your video cause all the stores that you have used as reference are nepal stores.
Sumggling will increase, custom authority's life jingalala😜
Woah at one point of time India was called bird of gold and now we are importing the same gold from those countries who stole it from us
Govt is preparing the stage for Adani to enter and buy Indian gold mines 😀
Shekhar, a mobile in place of your famous yellow sheets! Good!
You are an inspiration to learn new technology for us, the old unfortunate people whose children & grandchildren stay away and thus NOT having the needed assistance on call.
The logistics for smuggling here will be tricky. You can parallel import gold but the transportation costs will add up. I think price escalation will in fact rise the costs which will more than offset the 5% increase. Smuggling works the best when there is a total ban.
Haha tonnes of illegal gold is imported by India
extraordinary cut the clutter
agree on this, many NRIs also try to bling illegally , yes airports do the checking, but not very efficient checking in all the places .. but same time younger generation not showing interest on gold purchase , this can increase their numbers.. so both plus and minus r there.. it may not be life 1990s smugling that easy now, but sure some impact will be there..
Good analytical report !
Hi, glad for your response.
Prashant Dhawan Sir explained this in world affairs Shekhar Sir 👍🏻👍🏻👍🏻
Just for joke: India is not allowing auction of gold mines because then it shall reveal kgf was real😂
Kerala tops in gold smuggling.
Fact is that No GOI has been able to pin down , massive desire of Indians for Gold. Plethora of schemes have been launched , ETF , gold deposit scheme , payment mode tightened but to no avail. So are the Govts on a wild goose chase. Why keep moving in circles and accept the fact and plan something else.
Does this mean that Bollywood will again produce films with flamboyant gold smuggling villains?
I hope the Modi govt is realising how difficult it is to manage the economy. Hopefully, it will make them humble. Modi.2 is now marked by Inflation, slow growth, high unemployment, lower consumption, etc. There seems to be a lot of activity taking place and yet so less to show for it in terms of growth. Govt really needs to have a hard look at itself in the mirror and bring about necessary change - releasing uncomfortable data, introducing reforms after proper pilot studies (man, even an M Phil thesis has pilot studies), and lengthy consultation. Modi is great (perhaps) but all the policies flowing down from the PMO alone has been a disaster. There has been so many knee jerk reactions
You took the words out of my mouth.
There is also less corruption at top level.
@@gperiaswami3971 You will know if there is less corruption or more only when govt is changed.. Now all the agencies are busy in targeting opposition..
India is a country where no reforms will take place even in 10 years if the government is busy in doing consultations with everyone. Impossible. And if you think governemt has earlier rolled out reform policies which got boycotted by people without doing pilot , then you are ignorant . As simple as that.
Main reforms are farm,land and labour and if you do any one of it India will burn there will riots on the street. India will face trade deficits until these reforms are done and govt. recruits bearucrats on knowledge of subjects not ancient history and philosophy
What do you think that govts should to do to reduce current account deficits? Please do a CTC on this deficit, inflation and currency devaluation businesses its all quite confusing.
Salam Rocky bhai!
Small aaray metro shed is creating so much trouble, how could any sensible person can think about of India extracting gold from its own mines.
Irony ye ha ki jab ap trade trade deficit ki baat kr rahe ho tb hi kia motor ki advertisement aati hai screen pr.
falling markets and reduced returns from deposited and high taxation + inflation due to govt policies is what driving people to purchase gold. that's only saving which can protect ones investments. u can see last year in year increase in gold import is due to fear of govt failures and no confidence building measures from govt.
The link to increase in taxes to increase in smuggling is not a straight line. Am sure the government thought through this before implementing. Also really reducing the desire for gold will help us a lot in long term.
Money under the table scheme is very popular in Gujrat like Alcohol ban hawala money goes directly into Netas pocket not the govt revenue
I didn't quite get the idea of re exporting??
Gold is peoples money, Gold is the power that people possess and governments dont like that. if you were in venenzuela, argentina, pakistan , srilanka , libya , iran or russia then you are better in gold than your local currencies.
Hello Shekharji have you heard about rounding decimals? 4.43 can be founded to 4.4 and it will not dilute the accuracy
The "GOLDEN RULE": "Those with the gold get to rule." The better investment is tungsten rod which is used to counterfeit gold bullion. Some say there are three factories in China running nonstop... lol
Sir please explain what's the problems of colar gold mine, and also other gold resources in India.
While increasing tax on gold import is okay, it will result in more smuggling, black money, financing of terror activities etc. Govt must spend resources on raising awareness about buying Gold Bonds rather than buying gold physically. Artificial jewelry should be popularized. All this would reduce demand for physical gold and reduce imports in the long run. Also, Govt should withdraw Rs. 500 and Rs. 2000 notes from circulation and replace them by e Rupee in the form of a free e-wallet from RBI, aka free Paytm. This will help curb black money.
Higher Tax means huge smugling
19:45 शेखरजी कुछ समगलर्स से भी अपना सेटिंग करवा दो 💎💎💎
If only the ED is used to crackdown on real cheaters. Tax evasion is rampant because of which the black money increases and people prefer to hold their assets in gold
They have all the data with assets linked to Adhar. If there is one department that needs more staff, it is the ED and successful prosecution
ED is chasing politicians of opposition parties . ED is not to go after the criminals belonging to BJP .
It may cheer Smugglers but hopefully not Mr Gupta. Government should do the right thing without worrying about smuggling, which is what this Govt has done.
Every move of the Govt will cheer someone while bringing sorrow upon others.
You are a great AndhBhagat of BJP and their Govt. You appreciate every word and action of Govt. without applying your brains .
Be happy , you are not alone . There are millions who view Mr. Modi as their God . But India is going down everywhere ,internally and externally .
Very Sorry fo India -I am .
Is raising of duties frequently in India alone will solve the nations deficit budget and increase the GDP.
9.20 minutes....SG says...." I don't understand that but I'm explaining it to you ".....what the heck does that mean man!?
Tamping the price of gold, making it look not desirable while all the fiat currencies of the world are crashing
Is it possible that the word was leaked out well before the announcement that the tax was going to be raised in a month or so, and the industry simply went all out to get as much in to the country in May as was possible? Else a 7x increase is very, very difficult to swallow.
Who asked you to swallow ? You can just vomit it
Correct
Sounds like the joke about demonetisation
Who is the top smuggler ?
Investment in gold is bad for country should be taxed at the highest rate
Very good speech in gold department from India to poo RR people need gold not only high money people need gold when they die gold gone Prime minister if die no gold no money take along so think better'...
19:30 : Guptaji read the graph wrong.
kerala airport customs would have to work extra shifts😂😂😂😂
The UAE India FTA agreement would nullify smuggling upto 200 tonnes I think. This means that there's no incentive for smugglers through this route anymore. Now they have to take the more lengthier, expensive routes from Europe or Africa...and I am from Kerala.
What caused the upward tick in imports? Does that include crude, coal etc from Russia?
I don't think we need to fear about imports, if we are to export then we should be importing. Trade happens two way. We can't go out and say to world that, y'al buy everything from us, we ain't gonna buy anything from you. This fear of import and thirst for self sufficiency should be avoided.
I am a paid subscriber of print because I appreciate the kind of journalism you’re doing which is based on facts , evidences and also pretty much unbiased. My only problem is , i am unable to understand many hindi words you are inserting in between your narration as I am from south of India
I understand what you just said, but he generally does it while doing some story telling. That doesn't have much value in terms of information, just makes the ctc piece a bit more entertaining. Having said that, I agree he should either use English or add subtitles for those lines
Hi Varun, thanks for subscribing to ThePrint. We appreciate you writing in with your feedback.
It's a wrong decision. The Duty should be reduced to 2%.
It will kill the Smuggling.
If Women's says I don't want Gold
Possibility of Earthquake
Get more Indians access to stock market. Just like we have rupay create a ecosystem for stock trading and you’ll see a bigger boom in stock prices, more funding will be unlocked for companies to expand creating more employment, generate tax and increase wealth domestically
Stop coal imports by improving the logistics of coal transport. India has always been able to produce more coal with reserves/ manpower to dig it out but cannot evacuate coal fast enough out of the mines as we don’t have enough rail capacity by lines as well as rakes.
If confidence of stock price becomes good, people will invest it.
Meaning Companies should turn profitable in global way.
Until then people won't think to invest
Coal imports help some one no??
Who has mines in Australia??😊
@@soonyanaidu7875 our major mines are hinterland compared to ones that are closer to tidewater like Australia or Indonesia. Also expanding mining capacity in Australia is demographically possible due to low population density. Combined the 2 imported coal will be cheaper.
Also politicians devised a scheme to charge more for the imported coal and launder the money to a foreign country. Through this route it has become more lucrative to launder corruption money.
Gold is not a luxury it's an investment atleast for middle class families
So what is the ideal solution for India's gold import problem?
Shekhar sir u should run a report on how the salaried class is taxed... the high level of taxation and low level of social support offered.. one of the reason for brain drain
There should be tax on paying tax and there should be tax on not paying tax also.
The trade deficit figures are not correct, India’s trade deficit wasn’t $87b in 2021-22, it increased by 87% to reach approximately $190b.
Hi,
Our data has been sourced from here: pib.gov.in/PressReleasePage.aspx?PRID=1816577
Shekharji, like so many times your team goes one or two layers deep but never to the bottom gold and gems are the fav method of the rich like Choksis and modis to do round tripping ie stashing cash abroad
Almighty God bless you 🙏🙏