This is not correct. There is no borrowing to buy gold nor any...

This is not correct. There is no borrowing to buy gold nor any interest payments.

What is happening is that Indian rupees are being spent to buy gold which effectively retires that currency from the local economy. Indian rupees are ending up outside the country via purchases of gold. These rupees are then returned to the Indian central bank asking for repayment in foreign currencies including the USD.

This creates a situation in which the rupee devalues and the foreign currency having to be bought appreciates in value.

The gold is being held and not being expected to provide any returns other than the one of protecting against the devaluation which is happening as a result of the process above.

The Indians are putting their faith in gold and giving a thumbs down to fiat currency. That is what is driving the crisis in Indian currency.

It won't be long before the West will relearn what the Indians and Chinese already know. That gold is money and nothing else can truly be.