Gold standards! India’s gold processing industry to create 25,000 new jobs by 2030
Thu July 11 2024
The Indian gold processing and manufacturing industry is poised for substantial growth and transformation, promising economic benefits, supporting the Indian economy on a higher growth path to Viksit Bharat by 2047, said Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry (PHDCCI).
As per a study titled ‘Framework to Strengthen India’s Gold Processing Industry: A Step in Building Gold Self-Reliance’ conducted by PHD Research Bureau, PHDCCI, India’s gold processing and manufacturing industry is set to see substantial investments, rising from Rs 1,000 crore in 2023 to Rs 15,000 crore by 2030. This will further enhance employment from the current level of 3,000 to 25,000 workers.
It is anticipated that the employment creation will have a positive ripple effect on the economy, improving livelihoods and creating a virtuous cycle of economic growth.
Furthermore, domestic gold production of incumbents and new players will expand to 100 tonnes by 2030 adding significantly to the foreign exchange reserves, improving trade balance and contributing to GDP. By adjusting the value of imported finished gold to that of imported raw gold, this will save $ 1.2 billion in foreign exchange reserves and improve the trade balance. However, the total gold supply is expected to increase from the current level of 857 tonnes to 1,000 tonnes by 2030, that is a 2.4 per cent (average) annual growth rate.
Agrawal further explained that the thrust in domestic gold will enhance economic self-sufficiency and contribute to the GDP, with the share of gold production in GDP increasing from 0.04 per cent currently to 0.1 per cent by 2030. This influx of capital will drive technological advancements, facilitate infrastructure development within the sector, reduce the cost of processing gold and stimulate global expertise and partnerships, fostering innovation and best practices within the industry.
Moreover, it is expected that the GST revenues will surpass the duty foregone, indicating that even if the government maintains the current duty exemption rate, it will still collect substantial GST revenues. “GST paid on gold is expected to increase from Rs 300 crore to Rs 2250 crore by 2030, whereas the duty foregone by the government is projected to rise from Rs 285 crore in 2023 to Rs 1820 crore by 2030, reflecting the expanding scale of the domestic gold industry,” Agrawal said.
Source: https://www.financialexpress.com