In 2013-14, the Indian government issued Inflation Indexed Bonds for institutional investors and Inflation Indexed National Savings Securities for retail investors. The immediate trigger for the issue of inflation indexed securities was the coincidence of an increase in trade deficit, an increase in gold imports and a period of high inflation, leading policy makers to conclude that households were increasing their gold holdings as a hedge against inflation. It was expected that investors would use the Inflation Indexed Bonds to hedge against inflation and reduce their demand for gold. However, response to the inflation indexed securities was poor and the issue was not considered a success. The government must now decide whether this was a case of wrong policy or wrong execution.