A Golden Opportunity for India's Economy: Rethinking Gold Mobilization

The All India Jewellers & Goldsmith Federation (AIJGF) criticizes Prime Minister Modi's call to defer gold purchases amidst foreign exchange concerns. The federation advocates for domestic gold mobilization and recycling as sustainable solutions, highlighting potential risks to the livelihoods of 35 million in the jewelry sector. Key proposals include establishing a bullion bank and revamping the gold monetization scheme.

The All India Jewellers & Goldsmith Federation (AIJGF) has raised alarms over Prime Minister Narendra Modi's suggestion to defer gold purchases amid foreign exchange pressures, emphasizing that such measures threaten the livelihoods of millions in the jewelry industry. The federation urges reform instead of deferment.

Highlighting the importance of gold in Indian households, AIJGF claims domestic gold mobilization, recycling, and productive circulation can better solve foreign exchange issues while safeguarding the jewelry ecosystem. The body's president, Pankaj Arora, calls for a structured alternative to address the prime minister's concerns.

AIJGF's proposals include creating a bullion bank within the GIFT-IFSC to oversee gold mobilization and lending, revising the gold monetization scheme, and utilizing gold ETFs. With India's substantial private gold reserves, these moves could reduce import dependence while protecting livelihoods.