Awaiting India gold transformation!
Now it is clear that the gold policy is at latch. It is now shaping up at NITI Aayog even during the election! Recognizing the criticality and untapped potential of the gold market for providing a stimulus to exports, economic growth and employment, a Committee on Transforming India’s Gold Market was constituted by NITI Aayog under my Chairmanship, Ratan P. Watal, Principal Adviser, NITI Aayog and Member Secretary, EAC – PM.
Initially themes were set well, 1: Current Industry Profile, 2: Market Segmentation & Estimating Trends for Gold Market in 2022 including Bullion Exchange, 3: Trade and Investment Issues-Incentive Structure & Ease of Doing Business, Regulatory Framework for Gold, 4: 5: Tax Issues, Gold in the Financial System and Digital Payments, 6: Bridging Skill Development and Employment Generation & Technology Upgradation.
Various experts also enriched the sub group deliberations. The challenges were emerging from a regulatory framework, policy design and the constraints in the augmentation of the domestic supply of gold. The immense opportunities in the gold export market with the prospect of generating employment.
It was also recognized that there was a lack of comprehensive official data on several aspects of the industry, including employment, number of jewellers and the reach of the gold monetisation scheme and the extent of bank participation in the scheme.
The major recommendations of this Committee, evolved through the above process, are structured into five key focus areas. These are, 1: Make in India in Gold; 2: Financialization of Gold; 3: Tax and Duty Structure; 4: Regulatory Infrastructure and 5: Skill Development & Technology Upgradation.
The major recommendations focus on measures to boost the domestic supply of gold to reduce dependence on gold imports, by streamlining policies on gold mining, refining and monetisation. The Committee highlights the need to have greater financialisation of gold for both the investors and the industry.