IBJA backs Indian govt’s gold curbs; proposes monetisation of 1,000-tonne temple reserves

The India Bullion and Jewellers Association (IBJA) has backed the Centre’s efforts to curb gold demand and proposed a monetisation scheme for nearly 1,000 tonnes of idle gold held by temple trusts across the country to reduce pressure on imports and foreign exchange outflows. The industry body said the proposal could also help safeguard employment in the jewellery sector, particularly among small jewellers, artisans and labourers dependent on the trade, reports Fortune India.

The development comes after Prime Minister Narendra Modi urged citizens to reduce gold purchases amid rising imports and pressure on the country’s current account balance. Backing the government’s position, IBJA Gujarat State President Nainesh Pachchigar said the association has “decided to stand in support of the government” and has begun holding meetings across the country to balance national interest with business continuity.

 According to Pachchigar, the government’s move to increase excise duty on gold from 6% to 15% is expected to moderate domestic demand and curb forex outflows linked to precious metal imports. The development comes after Prime Minister Narendra Modi urged citizens to reduce gold purchases amid rising imports and pressure on the country’s current account balance.

Backing the government’s position, IBJA Gujarat State President Nainesh Pachchigar said the association has “decided to stand in support of the government” and has begun holding meetings across the country to balance national interest with business continuity. According to Pachchigar, the government’s move to increase excise duty on gold from 6% to 15% is expected to moderate domestic demand and curb forex outflows linked to precious metal imports.