India plans to issue sovereign gold bonds
New Delhi (Oct 31) India will issue sovereign gold bonds from November 26, offering an annual interest rate of 2.75 per cent to domestic investors, a government statement said on Friday. The bonds will be sold through banks and designated post offices and will be part of New Delhi’s market-borrowing programme. The decision to sell gold bonds is part of the government’s plan to provide an alternative to purchasing the yellow metal. Gold is India’s second-biggest expense on the import bill after oil as the country consumes nearly 1,000 tonnes of the metal every year.