Parminder Singh Bhamba

Sovereign Gold Bonds: India’s Glittering Debt Trap By -  Parminder Singh bhamba   Gold has always been India’s obsession — a cultural anchor, a hedge against uncertainty, and a symbol of prosperity. In 2015, the government tapped into this sentiment with the Sovereign Gold Bond scheme. Citizens were told: “Don’t buy physical gold. Invest in bonds. We’ll recognize it as gold, and we’ll even pay you 2.5% interest.”   It was marketed as a patriotic alternative to importing gold, reducing the current account deficit, and modernizing savings. But a decade later, the scheme’s glitter hides a growing shadow: a liability that has swelled nearly tenfold, threatening to weigh down public finances.   --- The Numbers Tell the Story - In 2017, the government’s liability under SGBs was ₹6,664 crore.   - By 2023–24, it had exploded to ₹68,598 crore — a 930% increase in seven years.   - Current estimates put the burden at ₹1.5 lakh crore.   ...