The Economist summed up the reason behind the gold craze of an Indian individual saying: “At the individual level, then, the gold craze makes sense. But in aggregate it is a disaster for India. Imports of bullion impose a massive strain on its balance of payments—amounting to $54 billion in the year to March 2013.”
I hope the Reserve Bank of India (RBI) is listening and provide better financial instruments for the masses leaving them with less incentive to invest in Gold, taking away some pressure from the bullion market.
Source: The Economist