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Indian government ponders ending hostility to gold

Section: Daily Dispatches

New Gold Policy Likely Soon; Looking at All Aspects of Yellow Metal, Commerce Minister Says

From the Press Trust of India
via, Mumbai
Thursday, December 27, 2018

The government is working on an integrated gold policy, which is expected to be released soon, to promote growth of the yellow metal industry and exports of jewellery, Commerce and Industry Minister Suresh Prabhu said.

"We are pushing for it as we need an integrated policy. In the next few days we will have a meeting of all concerned people to frame the policy on an expeditious basis. We are looking at all elements of gold in the policy," Prabhu told PTI.

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When asked whether the policy will consider the demand of the industry to cut the import duty on gold, he said: "It will also look at that side of it."

The domestic industry has demanded a cut in the import duty on gold to 4 percent from the current 10 percent.

The minister said that there is no such policy though India is the largest consumer and importer of gold.

India has the potential to become a "good exporter of value-added gold," he added.

The policy is likely to focus on promoting the domestic gold industry and exports of gems and jewellery, which contribute about 15 percent to total merchandise exports.

In February, Finance Minister Arun Jaitley announced formulation of a comprehensive gold policy to develop gold as an asset class.

Government think-tank Niti Aayog in August suggested that the government to bring down the import duty on gold from 10 percent and asked to slash the goods-and-services tax rate on the precious metal from the current 3 percent.

The think-tank also recommended reviewing and revamping the gold monetization and the sovereign gold bond schemes, besides setting up a gold board and bullion exchanges across the country to have greater financialization of the yellow metal. ...

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