Budget positive for gold industry: World Gold Council
Mumbai: The policy announcements unveiled in the Budget are positive for the gold industry as they aim to make the market more efficient, transparent and trustworthy for all stakeholders, says a report.
The Budget has increased the focus on agriculture and the rural sector, a move that is expected to boost farmer income and thereby jewellery sales. Plans to revamp the gold monetisation scheme and come out with a comprehensive policy on the precious metals is also expected to help the industry.
The World Gold Council in a report today said it expects some more important developments in the short-term.
"For example, the Bureau of Indian Standards is working on regulatory guidelines to make hallmarking mandatory. This is expected to come into effect in 2018," the report said.
This should ensure the integrity of the country's gold supply chain, protect consumers from under-carating and enhance the reputation of the jewellery industry, it added.
The bullion industry expects BIS to produce good delivery standards for 1 kg bullion bars processed by local refineries, it said, as this could be an important step in creating standardised bars that can be accepted by local banks, commodity exchanges and the proposed gold exchanges.
"This can help make the gold industry more formal and boost employment and exports," it said.
However, WGC said, some policy measures, like a gold spot exchange, may take longer to progress than others.
"Delivering structural reforms, the formation of a national gold spot exchange will entail a detailed process of engaging with banks and other market participants to design and build the right solution for the gold market," it added.
The domestic gold market, it said, can be supported by the economic boost that the recent financial and fiscal reforms could deliver.