The Gold Pause: Industry Faces Turmoil Following PM's Call

The gems and jewellery industry faces challenges after PM Modi urged a gold purchase freeze to save foreign exchange amid the West Asia crisis. Industry leaders suggest optimizing existing gold reserves instead, advocating for a regulated Gold Monetisation Scheme (GMS) to enhance economic stability and reduce imports.

The gems and jewellery industry braces for impact as Prime Minister Narendra Modi calls on citizens to postpone gold purchases for a year, aiming to conserve foreign exchange during the West Asia crisis. The All India Gem and Jewellery Domestic Council (GJC) warns this could stress the industry, which employs over a crore of people.

GJC Chairman Rajesh Rokde emphasizes the need for a regulated Gold Monetisation Scheme (GMS) to unlock household gold's value. Rokde cautions that past trends of 'revenge buying' might recur if gold demand is restricted, impacting industries linked to gems and jewellery, such as BFSI, e-commerce, and retail.

GJC Vice Chairman Avinash Gupta highlights India's cultural connection to gold, advocating for GMS to channel idle gold into the economy, reduce imports, and ease the current account deficit. Instead of cutting consumption, efficient use of existing gold is proposed as a solution to strengthen India's financial ecosystem.