The RBI move to ease curbs by the Reserve Bank of India has come as a major boost to the gold trade. According to Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council (GJEPC), "Gold supply will become easier for gold as well as diamond trade and they can improve their exposure to the US where demand is rising following the economic recovery”.
The move will also save jobs of 35 lakh people in India, who are associated with gold trade, directly and indirectly. Bullion traders feel that the RBI move will increase gold import by 15-20 tonne a month and thus make supply easier in the market. According to the World Gold Council (WGC), India is likely to consume 900 -1,000 tonne gold in 2014.
Somasundaram PR, managing director, WGC (India), said: " RBI's decision to permit the nominated banks to give Gold Metal Loans (GML) to domestic jewellery manufacturers out of the eligible domestic import quota of 80% will also relax some cost pressure that the jewellers were facing.”
Aruna Gaitonde, Rough&Polished correspondent in India
