INDIAN GOVERNMENT’S IMPACT ON GOLD 1

GOVERNMENT IMPACTS ON INDIA'S IMPORTS AND DOMESTIC GOLD PRICE THROUGH THE
PASSION OF COVID.

Pham Thi Khanh Linh

GBH210790 _ GBH1109

University of Greenwich (Vietnam)

Abstract

The study attempts to determine the impact of government on import-export and gold prices
in India during the covid pandemic. Traditionally, gold is a consistent option for investing in
people, especially after pandemic occurs when the profitability of other savings instruments
decreases. Besides, it is considered a safe investment, a hedge against inflation. However, the
government is taking all steps to prevent the decline in the price of Indian currency, and the
increase in import duties on gold is among them. The price of gold has been high since the
beginning of the Covid-19 pandemic but if you are planning to buy new jewelry, it will cost
you a higher price now because the government has increased import duties on yellow
metals. The goal of the report was to highlight specific government impacts and to provide a
common award and assessment of the problem. Since India imports most of the gold for
jewelry, the increase in import duties will make people more expensive. The covid-19
pandemic has had profound consequences for the global economy, affecting many
components of financial markets, including the gold market.
INDIAN GOVERNMENT’S IMPACT ON GOLD 2