Industry Advocates for Gold Monetisation Scheme Following PM Modi's Appeal
Industry bodies suggest Gold Monetisation Scheme, to make representation to PM Modi
The Indian Express
Image: The Indian Express
In response to Prime Minister Narendra Modi's call to reduce gold purchases, India's gems and jewellery industry plans to propose the Gold Monetisation Scheme (GMS). This scheme aims to allow individuals and institutions to deposit idle gold with banks, earning tax-exempt interest, while potentially reducing gold imports and supporting local employment.
- 01The Gold Monetisation Scheme (GMS) allows tax-exempt interest on deposited gold.
- 02Industry leaders emphasize the need for GMS to mitigate the impact of reduced gold purchases.
- 03India's gold import bill reached $75.4 billion last year, raising concerns over economic stability.
- 04The gems and jewellery sector employs nearly 5 million workers across India.
- 05Implementing GMS could stabilize jobs and reduce reliance on gold imports.
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Following Prime Minister Narendra Modi's recent appeal for citizens to refrain from purchasing gold for a year, the gems and jewellery industry is advocating for the implementation of the Gold Monetisation Scheme (GMS). This scheme allows individuals, trusts, and institutions to deposit unused gold with banks, earning tax-exempt interest. Nainesh Pachhigar, President of the Indian Bullion and Jewellers Association in Gujarat, highlighted that the GMS could significantly reduce gold imports and bolster the economy by providing stable employment for the 1.5 to 2 million workers in the jewellery sector. The industry, which generated a gold import bill of $75.4 billion last year, is eager to collaborate with the government to create a self-reliant economic model. Kirit Bhansali, Chairman of the Gems and Jewellery Export Promotion Council, emphasized the sector's role as a major employment generator for nearly 5 million artisans and small businesses. The GMS is seen as a long-term solution to balance gold demand with economic stability, allowing for more efficient use of existing gold reserves. The full impact of the Prime Minister's appeal on gold purchasing trends will become clearer in the coming months.
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The implementation of the Gold Monetisation Scheme could stabilize jobs in the jewellery sector and reduce the economic burden of high gold imports, benefiting both workers and consumers.
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