Page 9 - Bullion World Volume 04 Issue 08 August 2023

Bullion World | Volume 3 | Issue 8 | August 2023

India's Gold reforms:

Embracing the Past, Envisioning the Future

Mr Somasundaram PR, Regional CEO, India, World Gold Council

Another crucial initiative to regulate and standardise the gold value chain in
India is the establishment of a Self-Regulatory Organisation (SRO). The SRO,
backed by industry stakeholders, will oversee various aspects of the gold
value chain, and play a pivotal role in ensuring industry participants adhere to
the Codes of Conduct formulated under the Swarna Adarsh Abhiyaan (SAA)
initiative led by the World Gold Council. Mr Somasundaram PR

In the rich tapestry of India's diverse availability of diverse investment with the launch of the Revamped
and dynamic culture, gold holds avenues. Gold Monetisation Scheme
a special place that transcends (R-GMS). The gold loan market has
mere financial significance. From As gold assumes an increasingly flourished with collateral variously
bustling urban centres and quaint critical role in modern-day financial estimated between 2,000-3,000t
rural villages, millions of Indians planning, its status as a store of value in the organised and unorganised
cherish gold, viewing it as an integral expands beyond tradition to meet the segments. Now, spot gold exchanges
part of their lives. From celebratory demands of India's evolving economic need to develop gold-backed
occasions like Akshaya Tritiya, Diwali, landscape. India is one of the world’s financial products to provide impetus
weddings to harvest festivals, gold largest gold bar and coin markets. to the financialisation of gold in India.
assumes a central role. This deep- Investment demand for gold is driven
rooted affinity for gold is intertwined by its safe-haven appeal and the Reforming the India’s
with India's historical prominence as a ability to convert these products into gold value chain
trading nation. jewellery at a later stage. The global gold value chain
is undergoing significant
As India charts its course towards Over the last decade the transformations, driven by various
greater transparency and economic government’s focus on ‘bank the factors reshaping the industry's
growth, the journey of gold from a unbanked’ has witnessed tremendous structure. As world 2nd largest
cherished cultural emblem to a bona success. But the subsequent consumer, India plays a vital role in
fide financial asset takes centre increased use of banking services this transformation. It is imperative for
stage. Traditionally passed down as and the heightened awareness of the industry to embrace adaptability
heirlooms, gold has found its place financial products have created and innovation to cater to the evolving
in modern investment portfolios, headwinds that could weigh on future needs of consumers and investors,
serving as a hedge against inflation gold bar and coin demand. considering gold's immense social,
and market uncertainties. This cultural, and economic significance.
transformation has been fuelled The government has also taken steps
by changing consumer behaviour, to mobilise the huge ~US$ 2tn private Amidst the changing landscape of
increasing financial literacy, and the stock of gold in India, most recently the gold industry, hallmarking plays

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