A positive approach to gold appears to be demonstrably less disruptive and more consistent with socio-economic conditions in the country than a negative approach to gold, as amply demonstrated by the ineffectiveness as well as disruptive nature of the control framework in the past.
The response to measures aimed at discouraging utilisation and possession through schemes such as gold mobilisation and gold deposits have also not worked. A positive approach significantly reduces transaction cost as evident, for example, from the reduction in difference in price between world markets and Indian gold markets after liberalisation.