Temple Gold Monetisation: A Golden Strategy for India's Economy

As India's foreign exchange reserves feel the pressure from gold imports, the India Bullion and Jewellers Association (IBJA) is advocating for a government-supported monetisation of nearly 1,000 tons of idle temple gold. This strategic move, the association claims, could alleviate import strain and safeguard employment in the small jeweller and artisan sectors.

In response to Prime Minister Modi's call for reduced gold purchases, IBJA's Gujarat State President, Nainesh Pachchigar, emphasized the industry's commitment to national interest. He highlighted the government's decision to increase excise duty on gold from 6% to 15% as a survival strategy for businesses that also decreases foreign exchange outflows.

Pachchigar further explained that the association's proposition involves leveraging gold held by trusts, which amounts to approximately 1,000 tons. Instead of permanent ownership transfer to the government, IBJA seeks a structured monetisation mechanism to keep gold circulating in the formal economy. The advisory encourages jewellers to abstain from trading bullion exceeding five grams, aligning with objectives to curb speculative demand while maintaining essential jewellery trade.

(With inputs from agencies.)