| Date: |
07-10-2014 |
| Subject: |
WGC wants gold exports to swell to $40b by 2020 |
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World Gold Council envisions Indian gold jewellery to grow five times to $40 billion by 2020. Such a growth will also see the industry adding five million new jobs.
WGC’s vision is to outline objectives for the industry that address the savings habit underpinning gold demand, support value addition, increase employment opportunities and benefit the industry in an organised way without curbing supply or impacting the current account deficit. This will allow the gold trade to operate in a free and transparent manner for the benefit of millions of households and eventually lead to increased economic wealth for the nation.
According to WGC, the 22,000 tonnes of gold stocks in the country should be put to work for the economy, creating jobs, developing skills, generating exports and revenues – an essential part of the financial economic and social structure of the country.
Currently Indian gold jewellery exports stand at $8 billion and this can be increased to $40 billion to make India the ‘jeweller to the world’. Such a growth of the industry will help double the employment generated in the gold value chain by adding five million new jobs across manufacturing, retailing, assaying and recycling.
The dependence of the industry on imports can be brought down if almost 40 per cent of gold demand is met through domestic stocks and 60 per cent from imports and mining. “Big and meaningful thrust” to enhance gold deposit schemes and extend duty benefit and import entitlement for domestic gold deposits will help the industry meet 40 per cent of its requirement from within the domestic resources.
“In order to transform the country into ‘jeweller of the world’ artisans need to be empowered further by training and skill development and 40 per cent of the country’s gold demand must be satisfied through domestic stocks, mining and have a stable policy regime. As a nation we need to focus on measures that will unlock the potentially transformative value of the gold stored in millions of private household in order to fund nation’s growth. To do this we must find ways of mobilising and monetising the household savings imbedded in gold stocks,” said Somasundaram PR managing director, India, World Gold Council.
“The gold industry is already a significant employer in India, so let us showcase gold as a key enabler of growth, employment and revenue generation. For significant majority of Indians, gold is a ‘way of life’ and India’s prosperity can be ‘advanced by gold”, he added.
WGC also proposes that 75 per cent of gold sold should be standardised and hallmarked. Currently only the gold sold in the metro cities are mandated to be hallmarked. Extending higher loan-to-value ratio for hallmarked jewellery and making hallmarking mandatory for pieces above a designated selling price will be a right step towards this goal.
The council also proposes a ‘karigar welfare scheme’ towards skill development and training of artisans and ‘Gold tourism’ circuit to showcase handcrafted Indian jewellery in key places in the country.
PTI adds , IBJA, previously Bombay bullion association (BBA), has entered the bullion retailing by launching gold coins and bars. The bullion will be available between 1g and 1kg and will be sold to jewellers and individual buyers.
Source : mydigitalfc.com
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