THERE IS a tricky proposal engaging the government at the highest levels over the past 3-4 weeks. An empowered group of ministers has met twice to discuss it. Officials in the Prime Minister’s Office are seized of the issues connected with this idea. And the Cabinet Secretariat, the office responsible for government administration, has held meetings with those in the business to better understand the concerns, and ways to address them.

The thought behind the proposal probably has its origins in an austerity measure proposed by the PM at a public meeting in Hyderabad on May 10. In the backdrop of the West Asian crisis that led to a surge in oil prices, Modi had urged people to refrain from buying gold during festivals for a year, besides conserving fuel, restricting foreign travels, etc. The proposal, which has generated some interest among the few who are privy to it, is to launch a voluntary gold disclosure scheme. The idea seems to be to collect gold lying idle in private hands — that is, what people accumulated over the years for ‘investment’ (bars, coins), not what they bought for ‘consumption’ (jewellery) — and put it to use to reduce imports, and preserve foreign exchange.

In India, gold has huge sentimental value, has cultural and religious connections; but it has also been leveraged by governments during........

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