Reducing import dependence through refining and recycling the way to navigate India Gold sector: Report

New Delhi: India's gold sector is currently undergoing a structural transformation as the industry navigates a shift from consumption-led to investment-led demand. According to a joint report by ICRA and ASSOCHAM, India remains heavily dependent on imports due to negligible domestic mining output.

To address this vulnerability, the joint report emphasised that "reducing import dependence by scaling up organised refining and recycling needs to be prioritised." Key recommendations included continued support for lower import duties on gold dore relative to refined gold and the wider acceptance of IGDS-compliant bars to better integrate domestic refiners with financial markets.

The report also highlighted the need to recalibrate the Gold Monetisation Scheme (GMS), which has seen limited uptake since its inception. Cultural and behavioural factors continue to constrain consumer participation, particularly when sentimental jewellery is involved.

The report also highlighted the need to recalibrate the Gold Monetisation Scheme (GMS), which has seen limited uptake since its inception. Cultural and behavioural factors continue to constrain consumer participation, particularly when sentimental jewellery is involved.

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