ET | The Golden Truth
The Indian gems and jewellery market size is amongst the biggest in the world and the industry plays a crucial role in India’s economic growth. 7% of India’s total GDP contribution is made by the gems and jewellery industry. However, India is heavily dependent on gold imports to meet its domestic demand and a high rate of import duty has led to an increase in unofficial imports. Therefore, this has become more difficult for the mainstream market to advance and develop.
The industry also requires an unbiased GST collection mechanism to create more opportunities for the compliant and organized sections of the gold market. Hence, a Gold action plan needs to be pursued to create holistic and sustainable gems and jewellery market. The social and cultural transformations taking place in India should be underpinned by concerted efforts to provide easy access and improve integrity and fungibility to reinforce trust in gold as an asset in a post COVID world.
Key Talking Points
- Rise in working age population and evolving social & cultural transformation giving rise to Gold investment against all odds.
- Evolution of Gold industry in India. The transition from unorganized to organised industry. What are the major challenges?
- Impact of import duty on Gold market. What would happen if import duty is reduced? Best practices of other countries and how Govt can create a sustainable Gold ecosystem.
- The importance of billing for gold jewellery. How it helps the consumer, the seller, as well as the government.
- How to promote digital payments to further improve traceability and reduce tax revenue loss for government?
- What is One Nation One Gold price? Can the Govt standardise the pricing strategy for Gold across India?
- How to promote Gold industry better? How can organised players, associations and Govt come together to work on this?