As Good as Gold for Some Brides in India as Elections Approach – By Reuters

By Krishna N. Das

NEW DELHI – The northeastern state of Assam in India has announced it will provide gold worth approximately $530 to every bride from economically disadvantaged families. This initiative is part of a series of budget measures introduced ahead of the national elections scheduled for May.

Assam is governed by the Bharatiya Janata Party (BJP), led by Prime Minister Narendra Modi, which is currently facing challenges in retaining voter support due to declining agricultural incomes and unemployment rates that have disillusioned some voters since the last election in 2014.

Last week, the federal government revealed initiatives that included cash assistance for farmers and tax reductions for the lower middle class.

On Thursday, the Reserve Bank of India (RBI) reduced interest rates for the first time since 2017 in response to government requests aimed at boosting economic growth.

In parallel, the opposition Congress party has been forgiving farmers’ loans and has pledged cash support for the unemployed in states under its control. However, the provision of gold to brides marks a novel approach.

Himanta Biswa Sarma, Assam’s finance minister, earmarked 3 billion rupees (about $42 million) for the gold program in the upcoming fiscal year starting April 1. This allocation is sufficient to purchase 875 kg of gold, which could benefit around 80,000 brides.

Sarma emphasized the cultural significance of gifting gold ornaments to daughters as they embark on married life, a customary practice in Assamese society. According to Sarma, the initiative aims to prevent families from falling into debt due to wedding expenses. “It is my solemn responsibility to support those fathers who are unable to provide gold gifts for their daughters,” he stated.

The Assam government plans to source the gold from the RBI and distribute it directly to eligible beneficiaries. The program will be available to two women from families earning less than 500,000 rupees ($7,000) a year, with each bride receiving about 11.66 grams of gold.

Gold holds immense cultural value in India, contributing to its status as the world’s second-largest consumer of the precious metal after China, with anticipated consumption of 750-850 tonnes this year.

Beyond the gold initiative, the Assam government has also pledged to provide electric bikes to girls achieving at least 60 percent in their school-leaving exams, facilitating access to higher education.

Sarma has dismissed claims from opposition parties that he is making "fake promises" to garner votes. Political parties often find creative ways to win voter favor, historically offering a range of gifts from electric fans to laptops, pressure cookers, and televisions.

Under electoral regulations, such gift-giving must cease once the election date is announced.