Indian Ministry Seeks Suggestions to Improve Gold Monetization Scheme

SEATTLE (Scrap Monster): The Indian Commerce Ministry has sought suggestions from industry to improve the Gold Monetization Scheme (GMS). The plea was made yesterday by Piyush Goyal, Minister of Commerce, while speaking at an awards distribution ceremony organized by the Gems and Jewellery Export Promotion Council (GJEPC) in the capital city of New Delhi.

According to the Minister, increased retail participation in the scheme would result in unlocking huge stashes of gold stored in Indian households. The government had launched the scheme in 2015. However, the scheme has so far failed to evoke good response from retail investors, mainly due to low interest rates offered on deposits as well as concerns with regards to deposited gold.

The Minister reminded that unlocking of idle gold will help the country to reduce its gold imports. The country’s jewellery sector still depends on imported gold for its needs. The country’s annual gold demand is estimated at around 800 to 1,000 tonnes, majority of which is imported. As per estimates, approximately 20,000 tonnes of gold are lying idle with Indian households.

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The Minister of Commerce urged the industry to pint out the flaws in the existing scheme and come up with ideas and suggestions to revamp the existing GMS in order to attract more investors to the scheme.