Gem & Jewellery Industry Urges Govt To Modernise Gold Monetisation Scheme To Unlock Idle Household Gold

Mumbai: India's gem and jewellery industry has urged the government to strengthen and modernise the Gold Monetisation Scheme (GMS) to unlock the vast reserves of idle household gold in the country.

Import dependency vs lakhs of tonnes of dormant household gold

The Gem and Jewellery Council (GJC) made this appeal in response to Prime Minister Narendra Modi’s appeal for responsible gold consumption in light of the impact of rising gold imports on India’s foreign exchange reserves and current account deficit.

GJC Chairman Rajesh Rokde stated that national economic priorities must remain paramount. He observed that while India continues to import significant quantities of gold every year, Indian households already possess thousands of tonnes of dormant gold assets. According to him, the long-term solution lies not merely in curbing demand but in creating an effective, transparent and regulated mechanism to bring idle gold into the formal economy.

Goal: A 'responsible gold ecosystem' for national interest

Rokde emphasised that a revitalised Gold Monetisation Scheme, integrated more actively with jewellers and industry stakeholders, could help mobilise household gold, reduce dependence on imports and strengthen economic transparency and traceability. He further stated that dormant gold reserves could be transformed into productive national capital, contributing to broader economic growth.

Highlighting the industry’s position, Rokde remarked that the objective should be to create a “responsible gold ecosystem” aligned with national interests and economic stability.

Channel household gold into formal financial system

Echoing similar sentiments, GJC Vice Chairman Avinash Gupta said that gold remains deeply connected to Indian households culturally and emotionally, but acknowledged that the country must also address the economic implications of excessive imports.

Gupta stated that the industry respects the Prime Minister’s vision and believes that a robust and properly regulated Gold Monetisation Scheme could offer a sustainable long-term solution. He noted that instead of remaining locked away in homes and bank lockers, household gold could be channelled into the formal financial system.

According to Gupta, an efficient GMS framework could help ease pressure on the current account deficit, reduce import dependency and strengthen India’s financial ecosystem. He added that the focus should shift towards utilising existing gold resources more efficiently, transparently and productively rather than solely reducing consumption.

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