TIRUCHY: With Prime Minister Narendra Modi cautioning against buying gold, the ‘Thaai Maaman Gold Ring Scheme’ announced in the TVK’s poll manifesto has come under scrutiny. The talks has also gained significance as the centre, on May 12, increased import tax on gold and silver to 15% in an effort to reduce overseas purchases amid global economic pressures.
As per economists and policy observers, rising gold prices, higher import costs and global market volatility may significantly influence the feasibility of large-scale welfare schemes linked to gold distribution.
In its manifesto, TVK said every baby born in government hospitals would be given a gold ring as a token of the government’s blessing. However, the manifesto does not elaborate on details of the weight of the gold to be distributed.
According to TN Health Management Information System data, deliveries in government institutions stood at 5,50,075 in 2021-22, 5,42,872 in 2022-23, 5,04,499 in 2023-24 and 4,51,547 in 2024-25. Health policy experts point out most childbirth-linked welfare schemes in TN are generally routed via government healthcare institutions, making institutional delivery figures a likely indicator of the potential beneficiary base if the scheme is implemented via the public health system.
Assuming the scheme is implemented on a scale similar to the 4,51,547 deliveries recorded in government institutions in 2024-25, distributing 1-g 22-carat gold ring per newborn at the current market rate of around `15,000/g could require an annual expenditure of `677 crore.
Dr C Muthuraja, former dean and HoD of Economics at The American College, told TNIE that fluctuations in import duties, rising gold prices and changes in the rupee-dollar exchange rate have further increased domestic gold costs. “When the PM himself cautions against gold purchases, it reflects concerns over import dependence and global instability,” he said.
While economists raised concerns over long-term sustainability, some public health experts viewed the proposal as a possible incentive to encourage institutional deliveries.
“Benefits linked to childbirth have often encouraged families to opt for institutional deliveries,” Dr Shanthi Ravindranath, a public health expert, told TNIE, citing schemes such as the Dr Muthulakshmi Reddy Maternity Benefit Scheme.
Political analyst RM Sunil Kumar said the new government may eventually have to balance poll promises with prevailing economic realities.