The penchant for gold has seen the current account deficit go out of control. A worried Mr. Chidambaram has done his bit in the Budget to discourage demand for gold.
Somewhere along, however, he seems to understand the Indians’ love for gold and jewellery. With gold prices rising sharply, he has decided to amend the baggage rules.
The duty-free limit for eligible passengers to bring jewellery has been raised to Rs.50,000 in the case of a male passenger, and Rs.1 lakh in the case of a female passenger.
The insurance space has been opened up long ago. Yet, insurance penetration in a country of the size of India is very less. So saying,
Mr. Chidambaram has now ordained that all towns with a population of 10,000 or more will have an LIC (Life Insurance Corporation) office. Public sector general insurance companies too have been told to follow this dictum. Well, LIC has to listen to its master’s voice.