Page 10 - Bullion World Volume 04 Issue 08 August 2023

Bullion World | Volume 3 | Issue 8 | August 2023

a crucial role in ensuring the purity Looking Ahead: Gold Demand in mainstream asset. Over the next
and authenticity of gold products. India's Economic Trajectory five years, India's gold market can
To enhance transparency in the As the second-largest consumer of expect to witness innovations in
gold market and protect consumers gold globally, India's economic growth investment products and jewellery,
from fraudulent practices, the Indian and evolving demographics hold driven by digital trends, technology
government made hallmarking significant implications for the future integration, and the rise of bullion
mandatory for gold jewellery and of gold demand. Rising income levels, banking. As stakeholders unite to
artifacts starting from June 2021. a young and growing population, ensure a progressive gold industry,
and increasing urbanisation act India's journey with gold is poised for
Mandatory hallmarking is a as catalysts for potential demand transformation, shining brightly as a
significant reform that benefits growth. However, the gold market crucial component of the country's
all stakeholders in the gold value also faces challenges, such as economic trajectory in the years to
chain. It provides assurance to declining household savings and come.
consumers about the purity of the evolving consumer preferences.
gold they purchase, building trust India's love for gold continues
and confidence in the industry. For The expanding working-age to reflect its cultural, social, and
gold retailers and manufacturers, population, coupled with improved economic significance. As the
it encourages adherence to quality infrastructure and rising rural nation embraces the future,
standards, thereby improving their incomes, could drive sustained the gold industry must navigate
reputation and attracting more growth and increase gold demand. through evolving dynamics to meet
customers. Moreover, it promotes Furthermore, government initiatives to the demands of consumers and
fair competition, as all players are boost non-farming rural incomes may investors alike. Hallmarking and the
required to meet the same quality further bolster gold consumption. establishment of a Self-Regulatory
standards. Organisation for gold industry stand
Inflation has historically had a strong as pivotal reforms, shaping the gold
Another crucial initiative to regulate positive correlation with gold demand value chain in India and paving the
and standardise the gold value in India. As a hedge against inflation, way for a sustainable and responsible
chain in India is the establishment gold is perceived as a safe store of industry. By embracing transparency,
of a Self-Regulatory Organisation value. The recent rise in inflation due best practices, and consumer trust,
(SRO). The SRO, backed by industry to increased food and fuel prices may India's gold industry can achieve
stakeholders, will oversee various fuel demand for gold as investors global prominence and prosperity for
aspects of the gold value chain, seek to protect their wealth. all stakeholders involved. As India's
and play a pivotal role in ensuring economic trajectory unfolds, gold's
industry participants adhere to Government policies, particularly allure will continue to shine brightly,
the Codes of Conduct formulated related to import duties, significantly enriching lives and reflecting the
under the Swarna Adarsh Abhiyaan impact gold demand and influence nation's unwavering reverence for this
(SAA) initiative led by the World India's trade balance. High import precious metal.
Gold Council. The SAA, specifically duties have led to a rise in unofficial
designed to cater to India's unique or "grey" market trading, hindering
gold market, aims to promote best the growth of the mainstream gold
practices and consumer trust. market. Lowering tax rates and
The envisioned SRO presents an improving trust through measures
opportunity for India's gold industry such as mandatory hallmarking
to strengthen standards and bolster can combat the unofficial market
consumer confidence. By leveraging and increase gold's appeal as an
strengths, adhering to best practices, investment asset.
and proving its worth, the Indian gold
industry can cement its position as a The introduction of bullion banking
global leader in the gold market. With and mandatory hallmarking are
Industry’s support SRO for the Indian crucial steps towards transparency,
gold industry could become a reality safeguarding consumers' interests,
in the near future. and bolstering gold's position as a

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