As instability rises due to global events, many are looking to invest in safer avenues, and gold has been at the centre of this development, as it has emerged as one of the safer avenues for investment in a volatile time.
Gold Prices Surge
It is not just individual and institutional investors who are looking at the yellow metal, central banks around the globe, especially the Chinese central bank have also accrued gold in their reserve.
Gold prices have also accordingly risen in the market.
In India's commercial capital of Mumbai, the price of gold has reached Rs 82,560 for 10 grams of 24k gold.
In the past month alone, the price of gold has gone up by over Rs 4,000 per the same amount.
The Union Budget 2025 for the fiscal year 2025-26 will be delivered on February 1 by the country's Finance Minister, Nirmala Sitharaman. With the rapidly changing circumstances, the focus of the gold sector is now on the Union Budget.
Gold Monetisation Schemes
"As the gold sector continues to play a vital role in India’s economy and cultural heritage, we are optimistic about the upcoming Union Budget.", said, Aksha Kamboj, Executive Chairperson, Aspect Global Ventures and VP of India Bullion & Jewellers Association (IBJA).
Furthermore, addressing barriers to trading in electronic gold receipts is another critical area that requires attention and a decisive attention. | Wikimedia Commons
Some key expectation is for policies that foster growth and formalization in the industry, such as a reduction in import duties, which will enhance competitiveness and curb illegal imports.
We also look forward to measures that support gold monetization schemes, enabling consumers to unlock the value of their idle gold holdings.
Furthermore, addressing barriers to trading in electronic gold receipts is another critical area that requires attention and a decisive attention.
With the gold industry being a cornerstone of rural savings and employment, especially for small and medium enterprises, we urge the government to adopt fiscal policies that align with the sector’s long-term sustainability and its continuous contribution to the Indian economy. | Image credit: Wikipedia (Representative)
Efficiency and Trustworthiness
Another facet of prime attention is streamlining GST compliance and providing clarity on hallmarking norms that can significantly strengthen the sector's efficiency and trustworthiness.
With the gold industry being a cornerstone of rural savings and employment, especially for small and medium enterprises, we urge the government to adopt fiscal policies that align with the sector’s long-term sustainability and its continuous contribution to the Indian economy.
Introducing initiatives like setting up a jewellery export center in Gujarat International Finance Tec-City (GIFT City) and developing small jewelry parks in Tier 2 cities can also help in boosting exports and generate employment within the sector.
