While the world went gung ho about the rise of cryptocurrencies last year, a yellow metal which has not lost its shine as an investment option for thousands of years now, yet again proved its mettle. As the pandemic waned and lockdown lifted, the wedding halls came alive to the sound of DJs and to the shine of gold jewelleries donned by the bride and women guests. India imported 1,050 tonnes of gold worth about $55.7 billion in 2021, more than double the amount of 2020. Last year’s gold import bill surpassed the previous high recorded in 2011. It was indeed the wedding rush which pushed India’s gold import bill to another high last year. But the spread of a new Covid-19 variant is threatening to spoil the wedding industry’s party again, at a time when it looked all set to recover its previous losses. Restrictions are back again. Delhi has capped the number of guests in any ceremony to just 20. Several other states have taken similar measures.
Find out more about how Omicron may deal another blow to the wedding industry. Unlike the wedding industry, the equity markets looked unperturbed by Omicron and resultant restrictions. Frontline indices rallied for a fourth straight day on Wednesday amid a solid rally in financial stocks. The Sensex and the Nifty reclaimed their crucial levels of 60,000 and 17,900, respectively, overlooking Covid-19-related restrictions placed by state governments. Is this a cause of concern for investors? Are markets ignoring the threat from the third wave? Most emerging markets -- including that of India-- are performing so well because they carried out radical economic reforms like privatisation and disinvestment in early 1990. The then government, led by PV Narasimha Rao, charted a new industrial policy in 1991 to offload stakes in public sector undertakings. Privatisation and disinvestment became the new norms then. And they still are. Loss making national carrier Air India was privatized last year. And the government is going ahead with LIC disinvestment this year. But is there any difference between these two terms, this podcast finds out.
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