Reclaiming Sone Ki Chidiya: Should Bharat Go for Tax-Free Gold Imports in the Era of De-Dollarisation?

When Ranya Rao, the daughter of a senior IPS officer, was intercepted at Bengaluru airport with gold bars worth 12 crore, it brought to light a silent yet potent undercurrent of Bharat's gold economy — a vast, shadowy network of smuggling, hidden trade routes, underground syndicates, and informal economies that revolve around the yellow metal.

- SIDDHARTHA DAVE

Beneath this sensational headline lies a far deeper issue — one that touches the civilisational core of Bharat, challenges our economic policies, and beckons us toward a strategic reawakening. Should Bharat continue to tax the import of gold — or finally accept it as the currency of the future?

As the global economy shifts away from Western domination and enters a new era of multipolarity, driven by the weakening of the US dollar, increasing distrust in fiat currencies, and rising inflationary concerns worldwide, gold is emerging as the essential of a new financial paradigm.

For Bharat, the time has come to reclaim its identity not just as a nation of technological and military power, but as the Sone ki Chidiya — a civilisation that once led the world in wealth, wisdom, and values. And at the heart of that legacy lies gold.

De-Dollarisation and the Coming Age of Gold

Over the past year, the US dollar has depreciated by nearly 10%, signalling a larger trend in global economic relations. With rising debt levels in the US, including national debt crossing $34 trillion, emerging economies are seeking to free themselves from dollar dependency.

From bilateral trade in local currencies between India and UAE, to the BRICS nations' active discussions on a gold-backed trade settlement mechanism, the signs are unmistakable: the dollar's global hegemony is eroding.

In response to this emerging global reality, countries have begun stockpiling gold. Central banks around the world purchased 1,136 tonnes of gold in 2023 alone — the highest annual purchase in over five decades. Bharat's own RBI added significantly to its reserves, reflecting a strategic shift in monetary planning.

This move by central banks isn't just about hedging — it's about preparing for a future where gold could reemerge as the bedrock of financial transactions.