|
India's jewellery industry has called on the government to introduce a comprehensive gold monetisation scheme to channel idle household gold into the economy, instead of discouraging citizens from buying the precious metal.
The demand comes after Prime Minister Narendra Modi appealed to citizens to avoid purchasing gold for at least one year in a bid to reduce foreign exchange outflows and contain the widening current account deficit. The appeal has coincided with record-high domestic gold prices, intensifying concerns within the jewellery sector. Industry representatives warned that any abrupt decline in gold purchases could severely impact millions of artisans, traders, and workers dependent on the jewellery ecosystem across the country. Speaking to ANI, B. Sabarinath, President of the Tamil Nadu Jewellers Federation, said the sector is already facing a steep slowdown due to soaring prices, with sales declining by nearly 30 to 40 per cent. "We have already given two to three suggestions to our honourable Finance Minister that more than 25,000 tonnes of gold is lying idle with Indian women. We can plan a gold monetisation scheme where we can pull the gold lying idle in households and provide it to the industry as loans or through sale. This will reduce gold imports and save forex," Sabarinath said. He emphasised that mobilising dormant domestic gold reserves would be a more sustainable solution than curbing consumption. Kumar Jain, National Spokesperson of the Indian Bullion and Jewellers Association (IBJA), said global geopolitical tensions and aggressive buying by countries such as China have pushed gold prices to unprecedented levels. "Right now, gold prices are around Rs 1,55,000, which is an all-time high. There are many reasons behind this surge. Wars and international conflicts have increased uncertainty globally. At the same time, the rising dollar has worsened our current account deficit because India imports nearly 900 tonnes of gold annually," Jain said. Industry stakeholders also voiced concern over the broader employment implications of reduced gold demand. According to trade bodies, nearly 4 to 7 crore people are directly or indirectly dependent on India's jewellery industry. Deepak Chokshi, Zonal Chairman of the Gems and Jewellery Council, acknowledged the government's concerns over rising import bills but stressed that gold remains deeply embedded in Indian social and cultural traditions. "In India, gold is associated with every ritual, from the smallest family functions to the biggest ceremonies. India is among the world's largest consumers of gold, and if people suddenly stop buying it, the impact on the market and livelihoods will be severe," Chokshi said. Echoing similar concerns, Nainesh Pachigar, Gujarat State President of IBJA, said gold is closely linked with household savings and women's financial security. He cautioned that any disruption in demand would particularly affect small artisans and workers in manufacturing hubs such as Surat. "In cities like Surat, where more than 8 lakh artisans are employed in the jewellery trade, a sudden slowdown can directly affect the livelihoods of small and medium-scale workers," Pachigar said. (ANI)
|
