Gold Industry Plans to Urge PM Modi to Revive Gold Monetisation Scheme After Appeal to Avoid Buying Gold

As per news reports, India’s gems and jewellery industry plans to approach PM Modi to seek wider implementation of the Gold Monetisation Scheme (GMS). This move is expected after his recent appeal urging citizens to avoid purchasing gold for a year in the national interest.

Industry bodies believe reviving the scheme could help reduce gold imports without hurting employment in the jewellery sector, which supports millions of workers across the country.

What is the Gold Monetisation Scheme (GMS)? 

The Gold Monetisation Scheme allows individuals, trusts, and institutions to deposit idle gold with banks and earn interest, while enjoying tax exemptions on both interest income and capital gains. According to Indian Bullion and Jewellers Association, the scheme can be implemented effectively with support from jewellery manufacturers and retailers.

Industry representatives plan to submit recommendations to the Prime Minister’s Office, arguing that restrictions should target bullion imports rather than gold consumption itself.

India already has large domestic gold reserves lying idle in households, which could be brought into circulation through a structured monetisation framework.

Rising Gold Imports Raise Economic Concerns

The industry’s response comes as India’s gold import bill continues to surge due to elevated prices and strong demand.

India imported gold bars worth $16.5 billion from the UAE and another $58.9 billion from the rest of the world last year. Gold remains the country’s second-largest imported commodity after crude oil.

By reducing dependence on imported gold, the government could help save foreign exchange reserves and support economic stability.

Jewellery Sector Seeks Balanced Solution

As per news reports, industry leaders say the answer lies in better utilisation of existing household gold instead of discouraging consumption entirely. Meanwhile, jewellery retailers are already witnessing changing consumer behaviour, with buyers increasingly shifting from 24-carat to lower-carat jewellery amid rising prices.

Read more: No Hike in Gold Import Duty for Now, Govt Says After Modi’s Appeal to Cut Purchases.

Conclusion

The gems and jewellery industry is now pushing for the Gold Monetisation Scheme to become a long-term solution to India’s growing gold import dependence. Industry bodies believe a stronger monetisation framework could help reduce imports, protect jobs, and bring idle household gold back into the formal economy.

As gold prices remain high and economic concerns continue, the government’s next steps on gold policy are likely to remain closely watched by both consumers and investors.

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