From The Desk of Rajesh Bajaj

Transforming GJ industry & trade!

Till you would read this piece of edit, Suresh Prabhu, Minister for Commerce & Industry & Civil Aviation would have been announced a launch of Domestic Council for Gems & Jewellery (DCGJ) on January 29 in Mumbai with the dignitaries of National Ad-hoc Committee & amid stakeholders of gem-n-jewellery (GJ) industry & trade. This is the key step to bring cluttered GJ industry & trade under the one roof.

De facto the ongoing government spared time to listen the GJ Industry, tried to understand the root issues of the industry, right from metal procurement & up to retail sales & exports. Firmly the Narendra Modi government attempted to bring all ease of doing business (EoDB). De facto this domestic council is a part of transformation! While whole of the report, ‘Transforming India’s gold market’ is being submitted by Ratan P. Watal, Principal Adviser, NITI Aayog and Member Secretary, EAC-PM & Chairman of the report.

Highly impressive work is being carried by the committee of Watal & inked every aspect to reform the GJ Industry. As such they have focussed Gold & that begins reform from gold import & consolidates whole of GJ Industry & Trade as a one for the smooth running & capable to explore a growing value additions!

De facto since independence, gold & jewellery is being handled worst by the governments time to time! Created chaos, fear, uncertainties, created crook image for jewellers, kept unorganised & randomly regulated to keep open the window of corruption! Even after 70 years, there is no authentic data of total jewellers in India; no hallmark could reach to every village! No assaying center in every district, nothing yet they had empowered officials with seizure, attempted to implement mandatory Hallmarking in 2008....instead of inking a transparent gold policy of India!

Ratan P. Watal had shared his view at 2nd edition of India Gold & Jewellery Summit (IGJS) 2018, organized by The Gem and Jewellery Export Promotion Council (GJEPC), held on 23-24 November 2018 in the Capital. And in the same IGJS 2018 Rupa Dutta, Economic Adviser, Ministry of Commerce & Industry-Government of India had announced that the draft of the Gold Policy will be shared with the Union Finance Ministry (MoF) in December 2018. This is the political will to transform the industry & this is the beginning of implementation with the launch of DCGJ.

According to the report, GJ industry worth of about Rs 6.5 trillion constituted of 90 to 95% of MSMEs. Keeps on growing at the CAGR of 14.5% over the past half of the century! The industry employs about 6.1mn skill-n-semi skills! It is estimated to employ about 9.4mn players by 2022.

Directly ‘the report contributes to the vision of the Honourable Prime Minister for New India by 2022, wherein a transformed Gold Market has the potential to double the contribution of the gold industry to GDP; more than double the exports of gold; enhance employment opportunities, increase FDI inflow and increase the gold market size, without negatively impacting upon India’s Current Account Deficit.’

Transforming India’s gold market report has made their recommendations by focussing on five major headings, 1: Make in India in Gold, 2: Financialization of Gold, 3: Tax and Duty Structure, 4: Regulatory Infrastructure and 5: Skill Development & Technology up-gradation.

Through the above five headings it is recommending in the field of, 1:Gold Mining, 2: Gold Refining, 3: Gold Exports, 4: Hallmarking, 5: Digital Payments, 6: The Gold Monetisation Scheme: a-The Gold (Metal) Loan, b- Gold Deposits, c- Indian Gold Coin, d-The Sovereign Gold Bond Scheme (SGBS), e-The New Gold Savings bank Account, 7: Tax and Duty Structure, 8: The Gold Board of India, 9: The Bullion Exchange of India, 10: Gold Domestic Council, 11: Employability: Skill Development and Technology up-gradation!

This is the attempt by the ongoing government to bring & organise the whole industry as a one with various sectors and the government of India to carry a Generic Promotion of Indian Gold Jewellery especially of handcrafted jewellery! This is transformation where government is not labelling jewellers a cheat but promoting business through policy framework & shouldering its generic promotions!

De facto for the precise & hassle free trade & commerce of the gem-n-jewellery the ongoing government is likely to set up The Gold Board of India as it being recommended in the report as a regulatory body to implement the gold policy of India. The report says: “The Chair and Co-Chair of the Domestic Council should also be represented on the Gold Board of India, so that the concerns of the Council feed into policy dialogue and the concerns of stakeholders are addressed.”

Bottom line: “The Domestic Council would be an important body with the primary task of representing the entire Indian domestic gold industry.” I think this the prudent step of the ongoing government to reform, transform & perform the gem-n-jewellery industry & trade!