Mumbai: India’s gem and jewellery industry has warned that any broad reduction in gold jewellery purchases could impact employment linked to the sector, which supports over one crore people directly and several allied industries indirectly.
Responding to PM Narendra Modi’s appeal to avoid buying gold for a year amid rising geopolitical tensions in West Asia, All India Gem and Jewellery Domestic Council (GJC) chairman Rajesh Rokde said the industry supports the government’s national interest concerns but cautioned against measures that could hurt livelihoods.
“Whatever the Prime Minister has said is absolutely correct from the perspective of patriotism and national interest,” Rokde said.
“More than one crore people are directly employed in the industry. Insurance, banking, furniture, packaging and logistics sectors are also dependent on jewellery trade,” he said, warning that restrictions on jewellery buying could raise concerns over unemployment.
At the same time, Rokde supported discouraging bullion and coin purchases made purely for investment purposes. “Stopping unnecessary buying of bullion and coins is absolutely right,” he said.
The industry has instead urged the Centre to strengthen and modernise the Gold Monetisation Scheme (GMS) to bring idle household gold into the formal economy and reduce dependence on imports.
According to Rokde, Indians are estimated to hold around 40,000 to 50,000 tonnes of gold. “If even 10-20% of this gold is monetised, India may not need to import gold for the next 10 years,” he said, adding that the GJC has already submitted an end to end monetisation proposal to the government.
GJC vice-chairman Avinash Gupta said gold remains significant for Indian households, but excessive imports also affect the current acc ount deficit and foreign exchange reserves. He said a properly regulated GMS could help channel dormant household gold into the financial system.
Meanwhile, the digital precious metals industry has launched the Digital Precious Metals Assurance Council of India (DPMACI), a self-regulatory body formed by firms including MMTC-PAMP, SafeGold, Augmont, PhonePe, BharatPe, Mobikwik, Gullak, Lenden Club and CRED to improve transparency and consumer protection in the digital gold and silver market.
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