Govt mulls IGPC's gold investment product entailing deferred dollar outflow

The investor gains as he pays no taxes at the point of investment in a forward contract; the bank gets access to cheap funds which it can use to lend onward

The finance ministry is considering a scheme for investing in gold without dollar outflow at the time of buying. The scheme is different from all others where price risk is not on the government.

It has been proposed by the India Gold Policy Centre (IGPC), set up by the Indian Institute of Management- Ahmedabad. The proposal, now under consideration, involves buying gold from an international bank dealing in the yellow metal on forward delivery bases such as one-year forward. The transaction should involve an Indian bank, which has ties with an international bank for the bullion business.

At present, investors have only