India imported 1,069 tonnes of gold in 2021, up from 430 tonnes a year ago.
Ahmedabad:
India launched its first international gold exchange on Friday as the world’s second-largest consumer of the precious metal tries to bring transparency to the precious metal market.
India International Gold Exchange (IIBX), based in Gujarat International Finance Tec-City, or GIFT City in western state of Gujarat, could lead to standard gold pricing in India and help dealers Dealers of small gold bars and jewelers transact more easily.
“We will have better price negotiating power with the launch of this gold exchange,” said Indian Finance Minister Nirmala Sitharaman.
Gold is strictly regulated in India and currently only designated banks and central bank approved agencies can import gold and sell it to dealers and jewelers.
“IIBX, with its technology-based solutions, will facilitate the transition of the Indian gold bullion market to a more organized structure by granting qualified jewelers the right to direct access to gold imports directly through the exchange mechanism,” the exchange said in a statement.
China, the top gold consumer, operates such a market where all domestic production and imported gold must be bought and sold.
India imported 1,069 tonnes of gold in 2021, up from 430 tonnes a year ago.
The Multi-Commodity Exchange (MCX) and the National Commodity and Derivatives Exchange (NCDEX) offer gold futures contracts in India, but do not have any physical exchange for buying gold.
“India’s gold monetization efforts will also receive tremendous support from GIFT City’s transparent bullion trading system,” said Somasundaram PR, regional managing director of WGC India operations. Degree said.
Indian households own about 25,000 tons of gold, which is passed down from generation to generation. New Delhi has tried to cash in on this holding to reduce imports.
