Discouraging gold imports, containing the impact of exchange rate dynamics, moderating the impact of volatility of global commodity prices on domestic economy and moderating the increasing trend for financialisation of commodities pose serious challenges for India in the future.
Increasing the domestic exploration of gas and oil, augmenting alternative source of energy in a planned manner and enhancing domestic agricultural productivity by optimally exploring 32 agro-climatic zones of the country, however, can mitigate risks arising out of adverse commodity price movements to some extent.