Page 10 - Bullion World Volume 02 Issue 10 October 2022_Neat

Bullion World | Volume 2 | Issue 10 | October 2022

From the desk of

Mr Prithviraj Kothari,

IBJA National President

Greetings from India! a portion of investment demand for
As I understand this is a special gold to SGB and to release idle gold
edition for LBMA, let me reflect on (estimated at over 20,000 tonnes)
some of the critical reforms India’s held by the private households
bullion market witnessed in the last and temple trusts through a gold
three decades. Broadly, the reforms monetisation scheme and to address the needs of the business
can be divided into four phases. The manufacture Indian gold coins (until as well as end-consumers in India.
first phase (1992-1997) was marked 2011 coins were imported into
by lifting the ban on gold bullion India) mainly using recycled gold. The government also focuses
imports and specific permission to on reskilling and upskilling
NRIs. In the second phase (1997 Refining was encouraged. Quality artisans through establishing
– 2012), Gold was placed under standards are established and skill development centres and
Open General License, nominated enforced. Compulsory hallmarking creating common facility centres.
agencies, including banks, were came into force (2021). India Several programmes have been
permitted to import on behalf of International Bullion Exchange designed to increase the export of
customers (1997), and derivatives (IIBX), a new institution for spot jewellery through market access,
exchanges were permitted to start gold trading, was launched in 2022. roadshows and exhibitions. India’s
gold and silver futures (2003). Gold IIBX Ecosystem is the landmark bullion market and the downstream
ETFs were permitted to be listed Initiative by the Government of India gold jewellery sector are vibrant,
and traded on recognised stock towards making India a regional competitive, and cost-effective. With
exchanges (2007). In the second hub for refining, storing, trading the launch of IIBX, India provides
phase, customs duty on imports and financing precious metals. It excellent opportunities to overseas
was kept at a specified level and low is established within the GIFT City players such as bullion banks,
(as gold was considered a saving IFSC, India’s first financial services accredited refiners, bullion traders
instrument), formalisation of bullion free-zone set-up in the state of and dealers, asset management
trading began, voluntary hallmarking Gujarat. companies, ETF sponsors and
was introduced, and export of gold a whole set of other market
jewellery flourished. Several initiatives outside the participants. This is perhaps the
industry, such as the introduction best time to engage with the Indian
The third phase (2012-14) was a of Goods and Services Tax (GST) bullion market and grow together.
transition phase, as the government and digitisation, accelerated the Like every year, a strong delegation
wanted a pause on the ‘import- formalisation of the bullion sector from India would be there at the
consume’ model as gold imports and witnessed the introduction of LBMA conference. We can provide
sucked out substantial dollars, new products such as digital gold. you with more information.
putting strain on other sectors The emphasis is on transparency,
of the economy. We have been responsible sourcing and alignment Once again, I wish LBMA a grand
in the fourth phase of reforms with global best practices. I am success for the 2022 conference in
since 2014, when the BJP-led happy to inform you that the India Lisbon, Portugal.
government took charge under the Bullion and Jewellers Association
leadership of Mr Narendra Modi. (IBJA) and the National Stock Best wishes
In November 2015, three schemes Exchange of India (NSE) will soon Prithviraj Kothari
were launched- Gold Monetisation launch a domestic spot gold National President
Scheme (GMS), Sovereign Gold exchange that would increase India Bullion & Jewellers Association
Bond (SGB) Scheme and India Gold access to gold, provide complete (IBJA)
Coin Scheme. The idea is to convert transparency, traceability and

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