The solution to the pressure on foreign reserves does not lie in reducing demand for gold but in unlocking the existing gold through a transparent and regulated gold monetisation scheme (GMS), said the All India Gem and Jewellery Domestic Council (GJC) chairman Rajesh Rokde on Monday.
Reacting to Prime Minister Narendra Modi’s call to citizens on Sunday to use public transport more and curtail gold purchases and international flight trips for a year, Mr. Rokde a revitalised, jeweller-integrated GMS can help mobilise idle household gold, reduce dependence on imports, and strengthen the formal economy.
According to Avinash Gupta, vice chairman of the council, instead of idle gold remaining locked in households and lockers, GMS can channel it into the formal economy.
Managing Director of C. Krishniah Chetty Group C. Vinod Hayagriv said India imports nearly 800 tonnes of gold annually, and industry estimates suggest that close to 200 tonnes is locked away every year in the form of raw bullion purchased by individuals as passive investments. The gems and jewellery sector, which contributes nearly 7 % to India’s GDP and supports over 5 million livelihoods, continues to generate significant value through manufacturing, retail, exports and skilled employment. A structural reform permitting the sale of raw bullion only to GST-registered buyers can immediately reduce unnecessary imports and strengthen the organised jewellery ecosystem, he said.
In Coimbatore, which is the third largest gold jewellery manufacturing hub in the country, B. Muthu Venkatraman, president of the Coimbatore Jewellery Manufacturer Association, said, “The government should discuss the issue with the industry rather than urging the public to reduce consumption. The government can fix or limit the quantity of gold and silver bullion that is imported and permit only registered dealers to sell jewellery.”
Published – May 11, 2026 09:06 pm IST
