Union Budget 2016-17; India to Finalise on Gold Board

Gold Silver Reports → India in a bid to curb the ever growing greed for gold is boosting the reforms on Gold. The government has convened a meeting on Monday to finalize on National Bullion Board and gold spot exchange. As the Union Budget 2016-17 is only a week away, the decisions of the meet are likely to influence Arun Jaitley, Finance Minister’s announcements.

The meet will be attended by industry stake holders, representatives of Institute of Management Ahmedabad (IIM-A)’s India Gold Policy Centre and officials from the commerce and finance ministry.

India’s demand for Gold is rising. World Gold Council(WGC) says annual consumer demand for gold in India has surged by 1 per cent in 2015. Full year 2015 saw China (985t) and India (849t) continue their dominance in the global gold market, accounting for close to 45% of total global gold demand during 2015WGC said.

Importance of Gold Board in India

‘Why India Needs a Gold Policy’, a combined report by World Gold Council and FICCI released in 2014 had recommended the opening of a Gold Board in India. The report said the board would:

(i) Provide refinancing facilities to institutions lending against gold collateral. Helping to create accredited assaying units across the country.

(ii) Participating in the development of internationally recognised refineries.

(iii) Drafting guidelines and regulations for the standardisation of gold.

(IV) Developing policy measures to assist the monetisation of domestic stocks of gold.

(V) Contributing to the growth of gold-backed investment products. → Neal Bhai Reports