Normally it may sound crazy or too leftist. But in fact it is not. It is the truth. Here is how.
Why oil prices are increased? To reduce burden on govt due to oil subsidy.
Why govt is giving oil subsidy? To reduce burden on poor people due to high oil prices.
Why oil prices are high? Because we don’t have enough dollars to buy it from.
Why we don’t have enough dollars? We import more than we export.
Why we import more? Because rich people buy gold, and other stuff that is not available in India.
Why rich people buy gold? Because they are stupid enough not to know the relation between gold and oil.
What the heck, whats the problem with govt increasing oil prices?
Because it causes inflation, and food prices will rise, you can buy food for your family, but the poor guy can not. So you are causing him to save less, so that he does not have chance to increase his social status, get enough education for their kids etc.
Are you not importing your computers?
I know you will ask, you can import anything as long as that makes you export more than the imports. By importing gold we are not exporting anything.
This is bullshit, what is the proof of all this?
We import $150b of oil and $60b of gold. Now assume that we reduce our gold import by say 50%, see how much affect it will have on our purchase capacity of oil.