SEATTLE (Scrap Monster): The World Gold Council (WGC) announced publication of a new report- A self regulatory organization (SRO) for India’s gold industry.
According to P.R.Somasundaram, Regional CEO, India, WGC, the country’s gold market is one of the largest in the world. The gold industry in the country serves a diverse market that comprises of thousands of participants from manufacturers to retailers, from assayers to refiners and from hall markers to bullion traders.
Although India is world’s second largest consumer of gold in the world, the industry faces deep-rooted challenges. It is highly fragmented- geographically as well as across the value chain. A major part of the industry is unorganized and there exists a lack of infrastructure and traceability across the industry. Moreover, there is an over-reliance on international markets for gold imports.
Another impediment to the Indian gold industry is the high taxes and frequent changes. Also, the market has limited influence in the global market.
The WGC pointed out that an SRO will become first level of defence for an industry that lacks regulatory control. In addition to creating industry standards, an SRO will also audit and monitor industry participants. The proposed SRO would deliver immense benefits to the gold industry. The initial steps have already been taken, the trade body said.