Friday, May 18, 2012

India is poor(er) because you buy gold. Seriously!

OK, so the title isn't exactly right. What is basically says that because Indians spend a lot on gold, they don't put nearly enough in savings, instead demanding ever-increasing quantities of gold. Which of course screws up the current account deficit. 

I wonder how much of this is due to Keralites. Rather a lot, I'd wager. Mallus beat the rest of India hands down in purchasing gold...