India’s Govt To Release Draft Gold Exchange Policy By Jan 2019

(December 27 , 2018 - India Infoline News Service)

This policy is expected to contain measures to develop gold as an asset class and promote exports.

The government is expected to release the draft gold exchange policy by Jan 2019, according to an ET report. This policy is expected to contain measures to develop gold as an asset class. Further, we may also see certain export incentives for gold exporters. This policy is likely to aid the economy by creating more jobs in the sector.

The draft gold exchange policy is expected to be released in January next year and would be open for public comments, post which a final report will be issued. Currently, the import of the gold attracts 10% duty, while GST on gold stands at 3%.

India is one of the biggest consumers of gold. Further, a significant portion of the gold industry is unorganized. The policy is likely to suggest the establishment of a bullion bank and a spot gold exchange. This development is expected to be positive for bullion traders given that it will help establish an active market for them. Further, it will make the gold market more organized than it is currently. Moreover, any decline in import duties or export incentives would be positive for players such as Titan, Thanga mayil Jewellery, and TBZ.

The policy also aims to establish a gold board. Overall, this policy will promote faster financialization of gold. These developments are in line with the announcement of Finance Minister Arun Jaitley in Feb 2018 to formulate a comprehensive gold exchange policy.