The Indian gold industry has announced the establishment of its own Association for Gold Excellence and Standards (IAGES), with the support of the World Gold Council (WGC). The self-regulatory body aims to enhance consumer confidence and strengthen the credibility and trust of the industry itself, the WGC said.
The association "aims to promote fair, transparent and sustainable practices in the bullion industry, along with regulatory compliance, [the establishment of] a code of conduct and an audit framework," said Sachin Jain, CEO of WGC India. India, he noted, is the world's second-largest consumer of gold after China, and suffers from a lack of trust from consumers and even the government.
"One of the objectives of the association is to provide accreditation based on a very strict audit. After the audit, the member will receive the IAGES logo, which they can display," Jain said, without giving details.
The association will comprise industry bodies like the Indian Bullion & Jewellery Manufacturers Association (IBJA), All India Gems & Jewellery Council (GJC) and the Gem & Jewellery Export Promotion Council (GJEPC).
According to GJEPC Chairman Vipul Shah, “IAGES will not only strengthen India’s position as the global gold hub but will also drive innovation and growth within the industry.”
The IAGES logo represents the unification of various stakeholders of the Indian industry for the betterment of the gold industry, while the red colour signifies purity, dedication and represents the warm, diversified culture of India. The WGC will take the initiative to popularise IAGES among retail consumers and will also fund the campaign.
The association will be independently and professionally managed. The code of conduct created by it will be available to all industry players, but its adoption will be entirely voluntary. Registration for IAGES membership will be announced soon and the organization will be operational by early 2025.
The gold industry is an integral part of the Indian economy, contributing approximately 2% to India’s GDP and providing 3 - 5 million jobs.
India’s gold demand fell 5% year-on-year in the second quarter, but consumption should improve in the second half of 2024 due to local price adjustments following a sharp reduction in import duties, according to WGC data.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
