Economist Deepak Shenoy has pointed out that the rising volume of gold imports in India is exerting significant pressure on the Indian rupee and the country's current account deficit (CAD). He noted that simply advising people not to buy gold tends to have the opposite effect, potentially increasing demand. Shenoy proposed that the Reserve Bank of India (RBI) could take a more direct role in addressing this issue to help reduce the import bill and stabilize the economy. His insights highlight the complexities of managing gold imports and their impact on India's external accounts. Deepak Shenoy argued that India’s rising gold imports are becoming a significant pressure point for the rupee and the country’s current account deficit (CAD), and suggested that the Reserve Bank of India (RBI) could play a direct role in easing the burden.
Deepak Shenoy discusses impact of gold imports on India's Economy and RBI's role
by Riddra Markets Desk · 12 May 2026
Updated 12 May 2026, 11:36 am
Rising gold imports affect India's currency stability and current account deficit, requiring RBI's strategic intervention.