Page 17 - Bullion World Volume 3 Issue 11 November 2023

Bullion World | Volume 3 | Issue 11 | November 2023

Revitalizing India's Gold and Silver Refining Sector:

Economic Potential and Policy Imperatives

Mr Harshad Ajmera, Secretary, Association of Gold Refiners & Mints (AGRM)

Association of Gold Refineries & detailed precious metal content Given these significant contributions,
Mints (AGRM) is the only registered in the dore bar. supporting India's gold and silver
trade body / association in the refining sector is vital for economic
domain of precious metal refineries III. The duty differential between growth and global industry
and mints representing the BIS gold bullion and gold dore bars leadership.
recognized & NABL accredited to be changed from 0.65% to
laboratories in India. More than 1.65%. India can draw valuable lessons
90% of annual domestic refining of from Switzerland's success in
precious metals is carried out by developing its refining sector,
the members of the AGRM only. We Gold and silver refining sector which has become a global
take this opportunity to express the in India plays a crucial role in leader.
gratitude on behalf of all members country’s economy: • Global Refining Hub:
for the facilitation measures being • Economic Contribution: The Switzerland's position as a global
extended by the Government of gold and silver refining sector hub for gold refining with 70% of
India for the growth of the domestic is a major contributor to global gold refining happening.
refiners. India's economy. With 43 BIS • Export Performance:
accredited refineries, it plays Switzerland's ability to export
AGRM has been raising issues a pivotal role in the country's 1,352 tonnes of gold in 2021,
related to (i) modification in economic growth. amounting to $78 billion,
condition no. 40 of Notn. No. • Gold Import Volume: The fact underscores the country's
50/2017-Customs dated 30.06.2017 that these refineries collectively role as a major player in the
and (ii) reduction in Custom Duty refine approximately 200-250 international precious metals
on Import of Gold Dore, with the tonnes of gold annually in the market.
Ministry of Finance (MoF) for the last form of Dore and contributes • Factors of Success: Robust
three budgets. almost a third of India banking, stable regulations, and
consumption. tech advancements drive growth
I. Condition No. 40 (a) annexed • Revenue Generation: Import and competitiveness.
to the aforesaid Notn. may be duties and GST revenue • Ancillary Industries:
amended such that each bar in amounting to over USD 2.5 Switzerland's refining sector
a consignment of imported gold billion annually is a substantial has had a cascading effect
dore has a minimum weight of 2 source of income for the national on the economy. It has led to
kg. or above (instead of 5 kg. or exchequer. the development of flourishing
above). • Employment and Industry ancillary industries, such as
Growth: This sector also jewellery making, prestige
II. Condition No. 40 (b) and 40 generates employment watch manufacturing, and other
(c) may be amended such opportunities and supports supporting sectors.
that the goods are imported in related industries, such as • Domestic and Export
accordance with the packing jewellery manufacturing and Opportunities: Switzerland's
list issued by an aggregator / retail, further boosting the focus on refining has not only
exporter based in the exporting country's economic activity. created domestic opportunities
country and that the importer • Global Standing: Enhances but has also positioned it as
produces an assay certificate India's global standing in a major exporter of precious
generated / issued by such precious metals, facilitating metals.
aggregator / exporter giving international trade and relations.

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